January Job Openings Rise, But Trend Unlikely to Hold

January Job Openings Rise, But Trend Unlikely to Hold 

The January Job Openings and Labor Turnover Survey (JOLTS) report, released alongside annual revisions, offers a clearer picture of how the 2025 labor market actually performed.  

• Job openings averaged 7.1 million for the year, 571,000 below 2024 levels.

• Annual hires were down 2.3% from 2024. 

Employers posted fewer jobs and made fewer hires across the year. This has cemented the slow-hire environment that has become a persistent challenge for job seekers.

January 2026 Snapshot

• Job openings rose to 6.9 million, up about 400,000 from December, signaling a solid start to 2026. Though this is unlikely to last as February job growth slowed.

• The hires rate remained steady at 3.3%.

• The quits rate stayed unchanged at 2.0%.

• The layoffs rate decreased slightly to 1.0%.

• Low turnover and slow movement continue to define this labor market.

Industry Highlights

• Healthcare & social assistance: Continued to lead in new openings (1.4 million), although federal workforce reductions in February are likely to impact next month's report.

• Finance & insurance: Saw a notable jump in openings (+184,000), but the hires rate sharply declined—down 0.5% from December.

• Transportation, warehousing & utilities: Saw declines in both hires and separations, possibly driven by changes in imports/exports due to tariffs.

• Quits: Fell across most major industries, reflecting ongoing worker hesitancy as stability continues to outweigh the risk of moving.

February's weaker payroll data suggests that January's uptick in openings is unlikely to signal a turning point. With turnover remaining low and hiring restrained, the labor market continues to stay in a holding pattern as we head into spring.