US January JOLTS Job Openings Far Exceed Expectations, Layoffs Decline, Hiring Holds Steady

U.S. job openings increased in January, layoffs decreased, indicating that demand for labor improved before new signs of weakness appeared in the labor market.

Data released by the U.S. Bureau of Labor Statistics (BLS) on Friday showed that U.S. job openings in January reached 6.946 million, the highest since October last year, compared to an expected 6.75 million and a previous figure of 6.542 million. The monthly increase of about 400,000 job openings is the largest since November 2024.

This JOLTS report also included an annual revision of the job openings data, with most of the 2025 figures being revised downward.

Although job openings slightly improved in January, this did not significantly translate into more hiring, which aligns with the still relatively fragile state of the employment market. Recent reports show that U.S. non-farm payrolls declined in February, unemployment rose, and hiring plans among small businesses are decreasing, all of which challenge the previous view that “the labor market is stabilizing.”

The growth in job openings in January was mainly driven by several industries, including finance and insurance, healthcare and social assistance, retail trade, and accommodation and food services. Manufacturing job openings rose to their highest level since mid-2024.

Since the current unemployment number exceeds the number of job openings, these data further reinforce the Federal Reserve’s view that the labor market is not the main source of current inflation pressures. The indicator measuring labor demand and supply balance—the ratio of job openings per unemployed person—stood at 0.9 in January. At its peak in 2022, this ratio reached 2:1.

Other indicators from the JOLTS report show:

The hiring rate remained unchanged, while the layoff rate declined. This is consistent with recent unemployment insurance claims remaining at relatively low levels, indicating layoffs have not spread widely, despite some well-known companies announcing layoffs, such as Oracle, Morgan Stanley, and Block.

The measure of voluntary separations—the quit rate—remains at a low level, suggesting people are less confident about finding new jobs.

The JOLTS report is one of the labor market indicators most valued by former U.S. Treasury Secretary and Federal Reserve Chair Janet Yellen. It is also a key data point closely watched by the Fed. However, some economists question the reliability of JOLTS data, as response rates to the survey are currently very low—about half of what they were a few years ago.

Another daily job vacancy index released by job site Indeed shows a slight decline in job openings in January.

Earlier on Friday, data showed that inflation at the start of the year remained high, further reinforcing the Fed’s current stance of keeping interest rates unchanged. In addition to next week’s FOMC meeting, policymakers will need to weigh the new inflation risks from the Iran conflict against signs of potential deterioration in the labor market.

Meanwhile, U.S. consumer confidence in early March fell to a three-month low amid growing concerns that Middle East conflicts could push gasoline prices higher.