US Job Openings Drop to Lowest Level in Over a Year
The latest data reveals a significant decline in job openings across the United States. In November, the available job openings reached 7.15 million, the lowest number observed in over a year. This figure reflects a decrease from 7.45 million in October, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS).
Job Market Trends
Most industries experienced a downturn in job openings, with exceptions noted in retail and construction sectors. Hiring activity also diminished, with approximately 5.12 million new hires in November, down from 5.37 million the previous month. This marks the lowest hiring level since June 2024.
Industry Performance
- Information sector: +12,000 jobs
- Federal government: +11,000 jobs
- Construction: +11,000 jobs
The hiring rate, calculated as hires as a percentage of total employment, fell to 3.2%, matching its lowest rate in over a decade outside of the pandemic disruptions. Despite the decrease in hires, the report indicated fewer layoffs and a rise in voluntary resignations, suggesting a gradual increase in worker confidence.
Expectations for December
The November JOLTS report is part of a series of crucial labor market updates, culminating with the December employment report due soon. Economists anticipate a modest addition of around 55,000 jobs in December. This expected growth caps off a year characterized by sluggish employment gains amid various uncertainties impacting hiring practices.
ADP Private Sector Insights
According to ADP’s latest National Employment Report, private sector hiring experienced a rebound in December, with an estimated addition of 41,000 jobs. This is a notable recovery following a net loss of 29,000 jobs in November.
Sector Contributions
- Health care: +39,000 jobs
- Education: +24,000 jobs
- Professional and business services: -29,000 jobs
- Information: -12,000 jobs
These trends suggest that while health services and leisure industries are thriving, other sectors, particularly professional services, are experiencing declines. The data reveals a K-shaped recovery where higher-income consumers increasingly drive consumer spending.
Wage Growth Patterns
Wage growth trends also highlighted notable changes. Pay for employees who remained in their positions held steady at 4.4%, while job switchers saw an increase in wage growth from 6.3% to 6.6%.
Overall, the labor market continues to show signs of slowing, with low hiring and turnover activities. It remains to be seen how these trends will evolve in the coming months.
