WASHINGTON (AP) — Job openings in the United States unexpectedly rose in November, indicating that companies are still actively seeking workers amid a cooling labor market. According to a report from the Labor Department on Tuesday, openings increased to 8.1 million in November, the highest level since February, up from 7.8 million in October. This figure was lower than the 8.9 million reported a year earlier and the peak of 12.2 million in March 2022 during the economic recovery from COVID-19 lockdowns. Nevertheless, job openings continue to surpass pre-pandemic levels.
While economists had anticipated a slight decrease in job openings for November, layoffs saw a slight increase during the month, and the number of people quitting their jobs decreased. This trend suggests that Americans may be feeling less confident in their prospects of finding better job opportunities elsewhere.
The rise in job openings was particularly notable in professional and business services, which encompasses managerial and technical roles, as well as in finance and insurance. Conversely, there was a decline in job openings within the information industry, which includes publishers and telecommunications companies.
The American labor market has shown signs of cooling off from the robust hiring trends observed from 2021 to 2023. Employers have been adding an average of 180,000 jobs per month in 2024 through November, a decrease from the figures of 251,000 in 2023, 377,000 in 2022, and a record 604,000 in 2021.
When the Labor Department releases the hiring numbers for December on Friday, it is expected that companies, government agencies, and nonprofit organizations collectively added nearly 157,000 jobs last month, with the unemployment rate holding steady at a low 4.2%.
The labor market experienced fluctuations during the autumn months. In October, job growth was limited to just 36,000 due to hurricanes and a strike at Boeing. However, with the strike resolved, payrolls rebounded in November, increasing to 227,000.
The Federal Reserve closely monitors the labor market for insights into the direction of inflation. Rapid hiring could potentially drive up wages and prices, while weakness in hiring may indicate a need for stimulus through lower interest rates.
Responding to inflation that peaked at four-decade highs two and a half years ago, the Fed implemented 11 interest rate hikes in 2022 and 2023. Subsequently, inflation decreased from 9.1% in mid-2022 to 2.7% in November, enabling the Fed to start reducing rates. However, progress on curbing inflation has stalled in recent months, with consumer price increases remaining above the Fed’s 2% target on a year-over-year basis.
At its December meeting, the Fed lowered its benchmark interest rate for the third time in 2024. Nevertheless, the central bank’s policymakers indicated a more cautious approach to future rate cuts, projecting just two cuts in 2025 compared to the
