Job openings decreased to 7.6 million in the last month of 2024, according to the latest U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Summary (JOLTS) report.
The JOLTS report, which runs a month behind the BLS Jobs report, provides detailed data on the US labor market including the number of job openings, new hires, quits, and layoffs, providing insights into the current state of labor demand.
Job Openings Decrease to 7.6 Million
The number of job openings in the U.S. fell by 556,000, evening out after reported growth in the previous two months.
Despite fewer job openings, there are still fewer unemployed workers than available job opportunities in America. In December, there were 6.89 million unemployed workers and 7.60 million job openings. This equates to 1.10 jobs available per unemployed worker in December.
Job openings decreased in three industries that had reported growth in the previous month.
- Finance and insurance employers reported 136,000 fewer openings in December, evening out after a gain of 106,000 openings in November.
- Professional and business services reported 225,000 fewer openings after gaining 273,000 the previous month.
- Health care and social assistance reported 180,000 fewer job openings in December, reversing a 112,000 gain it reported in November.
Some sectors, however, reported more job openings in the month of December. Job openings rose in transportation, warehousing, and utilities (+38,000) and arts, entertainment, and recreation (+65,000).
Hire and Quit Rates Hold Steady
While job openings have fluctuated in recent months, the number of hires reported by U.S. employers has remained relatively stable, according to BLS. Although hiring was down by 325,000 compared to December 2023, there were 89,000 more people hired in December 2024 compared to November 2024.
Industries reporting hiring growth included:
- Finance and insurance hired 48,000 more workers in December than in November.
- Health care and social assistance also hired up, adding 20,000 hires.
Sectors that scaled back hiring efforts included:
- Construction, which dialed back hiring by 24,000 hires in the cold of December.
- Arts, entertainment, and recreation saw a decline of 32,000 hires.
Meanwhile, 218,000 fewer people quit their jobs in December compared to November. Quits, labeled by BLS as voluntary separations initiated by the employee, decreased notably in accommodation and food services (-85,000). Layoffs and discharges, on the other hand, increased in accommodation and food services (+102,000).
Quits Remained Stable in December
Quits, generally voluntary separations initiated by the employee, remained relatively unchanged in December – growing by just 67,000 to 3.2 million. According to BLS, quits can serve as a measure of workers’ willingness or ability to leave jobs.
In December, more workers quit in industries including manufacturing (+12,000), finance and insurance (+17,000) and health care and social assistance (+38,000). Quits decreased in transportation, warehousing and utilities (-42,000).
The Bigger Picture: Stabilization
According to Cory Stahle, an economist at Indeed Hiring Lab, December’s job openings dip should be viewed in context.
“While job openings in December fell short of expectations, reversing some recent gains, sideways movements in quits and hires helped to reinforce the emerging narrative of gradual stabilization in the job market after two-plus years of steady slowdowns,” Stahle said.
Consistent sideways movement, according to Stahle, could signal that the market is “primed for a rebound in the coming months.”
Signs of a potential rebound are evident in specific sectors, such as manufacturing.
While Reuters reported new orders for U.S.-manufactured goods dropped slightly in December, economic activity in the manufacturing sector expanded in January after 26 consecutive months of contraction, according to the latest Manufacturing ISM® Report On Business®.
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