Job Openings Dip in December, Cooling Labor Market

Key Insights:

* Job openings declined to 7.6 million in December, the lowest since September.
* Hiring remained stable at a 3.4% rate over the last three months.
* Quits rate, indicating worker confidence, held steady at 2%.

Data Details:

The Bureau of Labor Statistics reported a decrease from November's 8.15 million open jobs. This represents the most significant drop in openings since October 2023. The Job Openings and Labor Turnover Survey (JOLTS) also revealed 5.46 million hires during December, up from November's 5.37 million.

Economist Perspectives:

Economist Nancy Vanden Houten from Oxford Economics noted that the data reflects a stable labor market with low layoffs despite slow hiring. She believes it aligns with the Federal Reserve's assessment and justifies their pause in interest rate cuts.

Market Implications:

The recent JOLTS report has influenced market expectations. As of Tuesday morning, the market perceived less than a 50% chance of Fed rate cuts before the June meeting, according to the CME FedWatch Tool.

Upcoming Labor Market Reports:

This week, investors will monitor key labor market reports, including Friday's January jobs report. Economists predict an increase of 170,000 jobs in the month, with the unemployment rate remaining at 4.1%. The report will also include revisions to past labor data.