US Job Openings in December Last Year 'Below Expectations'... Signal of Labor Market Slowdown

7.6 Million Job Openings in December, Down 560,000 from Previous Month
Voluntary Resignations Decrease by 240,000 Compared to a Year Ago

The number of job openings in the U.S. last December fell significantly short of market expectations. This is interpreted as a sign that the labor market is gradually slowing down.

According to the Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Department of Labor on the 4th (local time), the number of job openings in December last year recorded 7.6 million, down 556,000 from the previous month (8.156 million). This is the lowest level in three months since September last year. It also fell well below the market forecast of 8.01 million.

By industry, the number of job openings decreased in professional and business services (down 225,000), health and social welfare (down 180,000), and finance and insurance (down 136,000). On the other hand, the arts, entertainment, and recreation sector saw an increase in job openings by 65,000.

Hiring was 5.5 million, down 325,000 from the previous month. The employment rate remained steady at 3.4%.

Separations were 5.3 million, and the separation rate was 3.3%, similar to the previous month. Among these, voluntary separations were 3.2 million, with a voluntary separation rate of 2%, both maintaining the previous month's level. However, compared to a year ago, voluntary separations decreased by 242,000. Layoffs, which indicate involuntary separations, were 1.8 million, with a layoff rate of 1.1%, showing no change from the previous month.

The number of job openings per unemployed person, closely watched by the U.S. Federal Reserve (Fed), remained at 1.1 for six consecutive months.

With job openings falling significantly short of expectations, the Fed's view that wage growth in the labor market is limited and does not contribute to inflationary pressure is expected to gain further support.

Stuart Paul, an economist at Bloomberg Economics, said, "The overall decline in job openings somewhat exaggerates the pace of cooling in the labor market," adding, "However, labor market demand is expected to remain on a somewhat shallow cooling trajectory over the next few months."

A more accurate picture of the U.S. employment market will be available in the January employment report from the U.S. Department of Labor on the 7th. Experts expect nonfarm payrolls to have increased by 154,000 last month, a significant decrease compared to the previous month (256,000). The unemployment rate is expected to have remained steady at 4.1%.

This content was produced with the assistance of AI translation services.