The latest Job Openings and Labor Turnover Survey (JOLTS) report reveals a sharp decline in job openings for December, dropping to 7.6 million. This figure marks the lowest since September and falls short of the Dow Jones estimate of 8 million. The JOLTS report, which runs a month behind other employment data, provides critical insights into labor market conditions and is closely monitored by the Federal Reserve. The report indicates a ratio of open jobs to available workers at 1.1 to 1, suggesting changes in the balance between job seekers and job availability.
The decline in job openings was most pronounced in specific sectors. Professional and business services experienced a reduction of 225,000 positions, while private education and health services saw a decrease of 194,000 openings. Financial activities were not immune to this trend, with job openings decreasing by 166,000. Despite these declines, hiring, voluntary quits, and layoffs remained steady throughout December, with total separations barely moving at 5.27 million.
The overall level of job openings fell by 556,000, translating to a decline in openings as a share of the labor force to 4.5%, or 0.4 percentage points below November's figure. Despite the downturn in job availability, nonfarm payrolls showed resilience, with a net gain of 256,000 jobs in the month. This suggests that while the number of openings has decreased, the hiring pace for existing positions remains robust.
Layoffs in December totaled 1.77 million, reflecting only a slight decrease of 29,000 from the previous month. This stability in layoffs indicates that despite fewer open positions, employers are maintaining their workforce levels without significant reductions.