Job openings stay steady, a sign labor market remains strong

WASHINGTON — U.S. job openings barely changed in January but remained elevated, suggesting that the American job market remains healthy.

The Labor Department reported Wednesday that U.S. employers posted 8.86 million job vacancies in January, down slightly from 8.89 million in December

and about in line with economists’ expectations.

Layoffs fell modestly, but so did the number of Americans quitting their jobs — a sign of confidence they can find higher pay or better working condition.

Job openings have declined since peaking at a record 12 million in March 2022 as the economy roared back from COVID-19 lockdowns. But they remain at historically high levels: Before 2021, monthly openings had never topped 8 million.

The U.S. economy has proven surprisingly resilient despite sharply higher interest rates. To combat resurgent inflation, the Federal Reserve raised its benchmark interest rate 11 times between March 2022 and July 2023, bringing it to the highest level in more than two decades.

Higher borrowing costs have helped bring inflation down. Consumer prices rose 3.1% in January from a year earlier, down from a year-over-year peak of 9.1% in June 2022 but still above the Fed’s 2% target.

The job market has remained durable throughout.

Employers have added a robust average of 244,000 jobs a month over the past year, including 333,000 in December and 353,000 in January.

Despite a wave of high-profile layoffs, the number of job cuts across the economy remains relatively low.

“For many, job security remains high,’’ said Nick Bunker, economic research director for North America at the Indeed Hiring Lab. “But the temperature of the labor market is not rising: if anything, it’s dropping.’’