Labor Department reports sharp drop in job openings |
Job openings slid in December while hiring, voluntary quits and layoffs held steady, the Labor Department reported on Tuesday. The Job Openings and Labor Turnover Survey (JOLTS) found that available
positions increased to 7.6m, a drop of 556,000 from November and 1.3m fewer than 12 months earlier. The decline left the ratio of open jobs to available workers at 1.1 to 1. Decreases were heaviest in the professional and business services sector, down by 225,000, and health care and social assistance, where 180,000 fewer positions were available. Finance and insurance lost 136,000 jobs. The hiring rate held at 3.4%, among the lowest in the past decade, while the quits rate, which measures the percentage of people voluntarily leaving their jobs each month, stayed at 2%. “Looking ahead, we continue to expect payroll growth to moderate over 2025 but look for labor supply to be an increasingly important driver of the slowdown,” said Sam Bullard, managing director and senior economist for Wells Fargo’s corporate and investment banking group. He added that "tentative signs of stabilization in the job openings rate, small business hiring plans and purchasing managers’ indices suggest demand is not continuing to weaken. These factors should help keep the unemployment rate only a little over 4% this year, even as payroll growth moderates to a monthly pace of about 130K.” |
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