The U.S. Bureau of Labor Statistics, in its latest report, indicates minimal fluctuations in key employment indicators for the month of December. On the last business day of the month, job openings remained relatively stable at 9.0 million, representing a decrease from the peak of 12.0 million observed in March 2022. Notable changes in this period include an increase in job openings within professional and business services (+239,000) and a decrease in wholesale trade (-83,000).
Hiring activity, reflected in both the number and rate of hires, exhibited little change, with 5.6 million hires and a 3.6 percent hiring rate. However, there were sector-specific variations, such as a decrease in hires within health care and social assistance (-119,000) and an increase in state and local government, excluding education, (+35,000).
Total separations, encompassing quits, layoffs, discharges, and other separations, maintained stability with 5.4 million separations and an unchanged rate of 3.4 percent. Noteworthy sectoral changes include a decrease in total separations within health care and social assistance (-91,000) and an increase in wholesale trade (+39,000).
Quits, indicative of voluntary employee separations, remained unchanged at 3.4 million, with a stable rate of 2.2 percent. However, there were sectoral variations, including decreases in health care and social assistance (-71,000) and transportation, warehousing, and utilities (-35,000), alongside an increase in wholesale trade (+63,000).
Layoffs and discharges showed minimal change at 1.6 million, maintaining a steady rate of 1.0 percent for the fourth consecutive month. Sector-specific dynamics include an increase in layoffs and discharges within transportation, warehousing, and utilities (+43,000) and state and local government, excluding education, (+18,000).
The Fed will be keenly watching these numbers and the upcoming Employment Situation as it decides the interest rate trajectory.
