JOLTS: Job Openings Slip to 6.5 Million as Labor Demand Cools
The December JOLTS report (released February 5) shows U.S. labor demand cooling into year-end. Total nonfarm job openings fell to 6.5 million. That was down 386,000 from November and down 966,000 from a year earlier. The openings rate held around 3.9%.
The drop showed up across several big sectors. Professional and business services posted a large decline. Retail trade and finance also moved lower. This mix matters. These categories often react early to slower growth, tighter credit, and margin pressure.
Hiring held up
Hiring did not fall off a cliff. Hires were little changed in December at 5.3 million. The hires rate held near 3.3%. That combination—lower openings with steady hires—usually signals a shift toward better balance. Employers still hire, but they post fewer open seats.
Revisions reinforced the trend
This report also revised November openings lower. November now stands at 6.9 million after a downward revision of 218,000. That change matters for trend-reading. It suggests the downshift started earlier than the initial headline implied.
What it means for markets
JOLTS remains a key gauge for wage pressure and inflation risk. Fewer openings can reduce job-switching leverage over time. That can cool wage growth. It also supports the view that inflation may keep easing, even if growth stays positive.
Still, openings remain above pre-2020 levels. So this is not a hard-landing signal on its own. It looks more like a late-cycle cool-down. The next few releases will tell us whether the trend stays orderly or turns into sharper deterioration.
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