The United States labor market displayed a mixed performance in November, with job openings increasing even as hiring activity slowed, signaling a potential cooling of labor demand.
Job openings, a key measure of labor market strength, rose by 259,000 to 8.098 million by the end of November, according to the Bureau of Labor Statistics’ Job Openings and Labor Market Turnover Survey, or JOLTS report, released on Tuesday. This marked an improvement over October’s figure of 7.839 million, which had initially been reported as 7.744 million. The latest data exceeded economists’ expectations, with a Reuters poll forecasting 7.7 million vacancies.
Despite the uptick in openings, employers appear increasingly cautious about expanding their workforce following a surge in hiring during the post-pandemic recovery. Hires dropped by 125,000 to 5.269 million in November, reflecting this hesitancy. Meanwhile, layoffs remained relatively stable at 1.765 million.
The labor market continues to benefit from low levels of layoffs, but other indicators point to a slowdown. Notably, the number of Americans quitting their jobs fell to under 3.1 million in November, a level last seen during the height of the pandemic. Historically, higher quit rates have been associated with worker confidence in finding better opportunities, often driving wage growth.
Elise Gould, senior economist at the Economic Policy Institute, emphasized the importance of job mobility for workers seeking higher wages in a quote to CNN: “Workers are going to quit at higher rates when they feel more confidence that they’re going to find a better opportunity…. That’s the best way that workers can get ahead and see stronger wage growth, is to quit their job and find another one.”
The JOLTS data paints a nuanced picture of the labor market, with rising job openings offset by signs of tempered hiring activity. While the market remains resilient, the cooling trend suggests that both employers and workers are adjusting to a slower pace of economic growth.
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