Job Openings Fall in December Despite Low Layoffs

WASHINGTON (Reuters) - U.S. job openings declined significantly in December, indicating a potential slowdown in the labor market. However, the low level of layoffs suggests the market remains resilient.

According to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) report, job openings decreased by 556,000 to 7.6 million on the final day of December.

November's data was revised upward slightly, showing 8.156 million vacancies instead of the previously reported 8.098 million. Economists had forecast 8.0 million unfilled positions.

Despite the decline in job openings, layoffs fell by 29,000 to 1.771 million. However, laid-off workers face increasing challenges in finding new employment as employers cautiously approach hiring.

Meanwhile, hires increased by 89,000 to 5.462 million.

The Federal Reserve maintained its benchmark overnight interest rate unchanged last week, amid concerns over the economic impact of President Trump's policies. The rate remains within the range of 4.25%-4.50%.

Since September, the central bank has reduced the rate by 100 basis points as part of its easing policy cycle. Fed Chair Jerome Powell stated that the central bank "does not need to be in a hurry" to adjust its stance.

In 2022 and 2023, the Fed raised the policy rate by 5.25 percentage points to combat inflation.