As the number of job openings soared to the highest level since May, job separations fell in November to the lowest level since the height of the pandemic, both signs of a broader cooling in the U.S. employment situation.
Labor market data shows that people are staying in their jobs more often as the labor market has become more fluid in recent years.
The number of job departures has fallen to just over 3 million, the lowest number since summer 2020, the Labor Department said Tuesday. The number of job openings in November jumped to 8.1 million from 7.8 million in October.
Economists noted that after surprisingly strong conditions throughout 2023, the overall trend is in a slowdown.
“The overall labor market job offer rate remains moderate, with 4.8% of jobs available in November compared to 5.4% a year ago. Hiring and turnover rates also declined during this period,” Nerd Wallet senior economist Elizabeth Renter said in a commentary Tuesday. “The labor market is cooling down a little overall.”
Some thought the pop-in openings were advantageous for workers while observing generally cooler conditions.
Bankrate senior analyst Mark Hamrick called the numbers “good news for workers.”
“The number of job openings has been on the rise since the last survey, reaching 8.1 million jobs at the end of November, higher than expected. This is an increase from the upward revision of 7.8 million job openings in the previous month. “This represents a decline of more than 800,000 people per year,” he wrote in his analysis.
The unemployment rate rose to 4.2% from last year's lowest level of 3.4%. The next jobs report from the Department of Labor will be released on Friday.
While the broader trend of a cooling labor market continues, weekly jobless claims have shown some activity recently.
Unemployment claims have fallen to the lowest level in the eight months ending in 2024. The number of new unemployment insurance claims filed in the week ending December 28 was 211,000, down 9,000 from the previous week's level. Unemployment insurance numbers may be a little volatile towards the end of the year due to seasonal hiring.
