(March 13): US job openings rose in January and layoffs fell, signalling that demand for workers was improving before the labour market showed fresh signs of weakness.
Available positions increased to 6.95 million from 6.55 million in December, according to Bureau of Labor Statistics data out on Friday. The median estimate in a Bloomberg survey of economists called for 6.75 million openings.
The report included annual updates to the vacancies figures, which were marked down for most of 2025.
While openings improved slightly in January, that didn’t translate into much more hiring, aligning with a job market that remains relatively fragile. Recent reports have indicated payrolls declined in February, unemployment rose and hiring plans among small businesses fell, all shaking the previously held notion that the labour market was stabilising.
The advance in openings was driven by a range of industries, including finance and insurance, health care and social assistance, retail trade and accommodation and food services. Openings in manufacturing climbed to the highest since mid-2024.
See also: Treasuries fear gauge surges to nine-month high on war fallout
The hiring rate was unchanged, while the layoffs rate fell. That aligns with a relatively low level of unemployment insurance claims and indicates that layoffs aren’t widespread — despite recent news of job-cut plans at high-profile companies such as Oracle Corp, Morgan Stanley, and Block Inc.
With the number of unemployed people exceeding job openings, the figures also reinforce the Federal Reserve’s view that the labour market is not a source of inflationary pressure. The ratio of vacancies per unemployed worker, a proxy of the balance between labour demand and supply, held at 0.9 in January. At its peak in 2022, the ratio was 2 to 1.
Data out earlier on Friday showed US inflation was elevated at the start of the year, reinforcing officials’ preference to keep interest rates on hold for now. Beyond next week’s meeting, policymakers will need to be cognizant of balancing new inflation risks from the war in Iran with any signs of deterioration in the labour market.
See also: Kevin Warsh is in for a rude awakening
Meanwhile, US consumer sentiment declined to a three-month low in early March as fears mounted about the impact on gasoline prices from the Middle East conflict.
According to the JOLTS report, the so-called quits rate, which measures the percentage of people voluntarily leaving their jobs each month, held at a low level. This suggests people are less confident in their ability to find a new position.
Some economists have questioned the validity of the JOLTS data, in part due to the survey’s low response rate and sometimes sizable revisions. A separate index by job-posting site Indeed, which is reported on a daily basis, showed openings edged lower in January.
Uploaded by Felyx Teoh
