U.S. job openings rose unexpectedly in November, showing companies are still looking for workers despite an overall slowing job market.
Job openings rose to 8.1 million in November from 7.8 million in October, the Labor Department said on Tuesday. While that was down from 8.9 million a year ago and a peak of 12.2 million in March 2022 as the economy was recovering rapidly from COVID-19 restrictions, they were still above pre-pandemic levels.
Economists had previously expected job openings to decline slightly in November.
Layoffs rose slightly in November, and the number of workers quitting their jobs declined, suggesting that Americans are less confident about finding better jobs elsewhere.
The U.S. job market has cooled from a very active hiring period in 2021-2023. Employers added an average of 180,000 jobs per month in 2024 through November, not bad but down from 251,000 in 2023, 377,000 in 2022, and a record 604,000 in 2021.
When the Labor Department releases hiring data for December on Friday, it is expected to show that companies, government agencies, and nonprofits added nearly 157,000 jobs last month and the unemployment rate remained low at 4.2%.
Data throughout the fall has been erratic: In October, hurricanes and a strike at Boeing limited job growth to just 36,000. In November, after the strike ended, payrolls rebounded, adding 227,000.
The Federal Reserve (Fed) closely monitors the labor market for clues about where inflation is headed. Rapid hiring can push up wages and prices. On the other hand, a weak job market may suggest the economy needs a boost from lower interest rates.
In response to inflation hitting a four-decade high two and a half years ago, the Fed raised its benchmark interest rate 11 times in 2022 and 2023. Inflation has managed to fall from 9.1% in mid-2022 to 2.7% in November, allowing the Fed to start cutting rates. However, inflation progress has stalled in recent months, and year-over-year consumer price inflation remains above the Fed’s 2% target.
At its December meeting, the Fed cut its benchmark interest rate for the third time in 2024. However, central bank policymakers signaled that they may be more cautious about future rate cuts: Markets expect only two cuts in 2025, compared to the four forecast in September.
