Job Market Cools Down: What's Happening in the US?

Job Openings Drop to Lowest Point in Over a Year

In November, the number of job openings in the US dropped to 7.15 million, down from 7.45 million in October. This marks the lowest point in over a year, indicating that employers are less eager to hire.

Industries Affected

• Most industries saw a decrease in job openings.
• Retail and construction were the exceptions, showing no decline.
• Hiring slowed down, with only 5.12 million new hires in November, compared to 5.37 million in October. This is the lowest number of hires since June 2024.

Industries with Growth

Only a few industries saw any growth in November:

• Information
• Federal government
• Construction

The hiring rate also fell to 3.2%, the lowest it has been in over a decade, not counting the pandemic.

Positive Signs for Workers

• Fewer layoffs in November.
• More workers quit their jobs, possibly indicating confidence in finding new opportunities.

Stagnant Job Market

The job market has been slow for a while, with neither high hiring nor high firing. Economists predict only about 55,000 new jobs in December.

Private-Sector Hiring Rebounds

In December, private-sector hiring rebounded after a drop in November. The sectors with the most job gains were:

• Health care
• Education
• Leisure and hospitality

However, professional and business services and the information sector saw job losses.

Consumer Spending and Wage Growth

• Higher-income consumers are driving spending in certain sectors.
• Small businesses saw a recovery in hiring, unlike large employers who pulled back.

Wage Growth

• Wage growth for people who stayed in their jobs remained steady at 4.4%.
• Those who changed jobs saw their wages increase by 6.6%, up from 6.3%.