December Job Openings Widen the Gap Between Seekers and Opportunities
December Job Openings Widen the Gap Between Seekers and Opportunities
The December Job Openings and Labor Turnover Survey (JOLTS) report confirms a trend that many job seekers are already feeling: the labor market is becoming increasingly difficult to navigate. Job openings fell to 6.5 million in December—a decline of nearly one million from a year ago and the lowest level in over five years. While the unemployment rate has shown signs of stabilizing, the environment remains highly competitive, with roughly one million more unemployed individuals than available job openings.
Hiring efficiencies and industry divergence: Despite the drop in total openings, hiring showed a modest sign of life as the hires rate ticked up slightly from 3.2% in November to 3.3% in December. This suggests that even as the volume of opportunities shrinks, employers are becoming more efficient at filling their remaining roles. The strongest hiring gains were concentrated in real estate and rental leasing, transportation, and mining.
Industry-level data reveals a notable divergence in market sentiment:
Declining opportunities: Job openings fell most significantly in professional and business services, retail, finance, and healthcare. Interestingly, despite the drop in openings, professional and business services saw a decrease in layoffs and terminations compared to the prior three months—suggesting that while new roles are scarce, current positions remain relatively stable.
Growing demand: Openings increased in manufacturing, leisure and hospitality, and accommodation and food services. These sectors traditionally rely on a higher proportion of immigrant labor. The rise in openings here may point to a tightening labor supply as immigration flows pull back, compelling employers to keep postings active longer as they search for available labor.
Healthcare and long-term labor dynamics: Healthcare presents a unique paradox in the current data. While the sector remains a primary engine for overall job growth in payroll reports, it saw a drawback in job openings this December. This highlights a looming structural challenge: as an aging population drives up long-term demand for care, policy changes impacting funding and education could create supply-side bottlenecks.
In the near term, businesses are staying away from aggressive expansion in light of continued policy changes and challenges around tariffs and geopolitical relations. Retention and internal stabilization remain the most advantageous strategies for employers and workers alike in navigating this period of continued economic uncertainty. Inflation is cooling and interest rates are stabilizing, which could open the door to a more certain future around the corner, which would translate to a warming hiring landscape. But in the meantime, the labor market remains locked in place.