Job openings spiked in December to high not seen since summer
The increase in job openings was primarily driven by shifts in retail, food service and accommodation.
Job openings climbed past 11 million in December according to fresh data from the Bureau of Labor Statistics Wednesday, up from 10.4 million the previous month as layoffs rose in some corners of the economy.
The unusual spike in hiring comes as the tech sector has shed tens of thousands of jobs, signaling ongoing resilience in the labor market even as the specter of a recession loomed. The last time job openings reached 11 million was July, when the labor market was still considered quite hot. The unemployment rate remains near historic lows at 3.5 percent, according to the most recent estimate from BLS.
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The increase in job openings was primarily driven by shifts in retail, food service and accommodation. Separations remained little changed, even as big name companies across finance, media and tech moved to rein in their head counts. Hiring was still strong and steady across all industries at 6.2 million.
Quits also remained steady, with 4.1 million workers voluntarily leaving their jobs in December.
Despite the rising layoffs, the economy added 223,000 jobs in December, according to a different government report, reflecting the complex forces that seem to be pulling the labor market in competing directions. Hiring in 2022 reached a record at 76.4 million, according to Julia Pollak, chief economist at ZipRecruiter. 2022 also reached a record for employees who quit their jobs at 50.5 million, and it marked the lowest year for layoffs and discharges, with just 16.8 million.
As the labor market softens, employers have been moving away from perks that were prevalent amid widespread talent shortages, from remote work opportunities to bonuses, according to Bledi Taska, chief economist at Lightcast.
"There are many ways employers can signal that hiring is slowing down beyond taking down job postings," Taska said. "When we see employers drop bonuses or flexible schedules from job ads, that's significant. Employers may still need workers - but they aren't as worried about finding them as they were last year."
Signs of softening surfaced in ADP’s latest private payrolls report, also released Wednesday, which saw its smallest increase in the past two years with 106,000 jobs added in January. That’s down from 235,000 jobs in December. Annual pay was up 7.3 percent year-over-year, according to the report.