Vacancies Hit Five-Year Low (Image Credits: Unsplash)
United States — The Labor Department reported a significant drop in job vacancies last December, reaching levels not seen since the initial stages of the COVID-19 crisis.
Vacancies Hit Five-Year Low
Job openings tumbled to 6.5 million in December, down from 6.9 million the previous month. This marked the fewest vacancies since September 2020. Layoffs edged higher during the period, while the number of workers who quit their positions held steady at 3.2 million.
The figures arrived below economists’ expectations. Such a decline underscores a cooling in employer demand for new hires. Businesses appear cautious amid uncertain economic signals.
Job Growth Lags Behind Broader Expansion
Employers added an average of just 28,000 positions monthly since March. That pace stands in sharp contrast to the post-pandemic surge, when monthly gains averaged 400,000 jobs from 2021 through 2023.
Gross domestic product, meanwhile, expanded at its quickest rate in two years during the July-to-September quarter. This disconnect leaves analysts grappling with mixed indicators. Strong output persists, yet hiring remains subdued.
Recent Data Points to Ongoing Caution
Private sector payrolls grew by only 22,000 last month, according to payroll processor ADP—far short of projections. Layoff announcements topped 108,000 in January, the highest for any January since 2009 and the most since October.
Upcoming Labor Department figures for January, due next week, point to about 70,000 total jobs added. That would represent a modest increase from December’s 50,000 but still signals restraint.
- December job openings: 6.5 million
- November job openings: 6.9 million
- Quits: 3.2 million (unchanged)
- Monthly job adds since March: 28,000
- Post-COVID boom average: 400,000
What Drives the Hiring Slowdown?
Heather Long, chief economist at Navy Federal Credit Union, highlighted the trend in a recent analysis. “The hiring recession isn’t going to end anytime soon,” she wrote. “Job openings in December just fell to their lowest level since September 2020. It’s yet another sign of how little hiring—or interest in hiring—is happening in this economy.”
Experts debate potential causes and outcomes. Will hiring pick up to align with growth? Could expansion moderate in response to labor weakness? Or might artificial intelligence and automation enable robust activity with fewer positions needed?
| Period | Average Monthly Job Adds |
|---|---|
| Since March 2025 | 28,000 |
| 2021-2023 Boom | 400,000 |
| January 2026 Forecast | 70,000 |
- Job openings reached 6.5 million, a five-year low.
- Hiring remains tepid despite solid GDP growth.
- Layoffs and weak private payrolls amplify concerns.
The labor market’s path forward remains unclear, balancing resilience with restraint. Workers and businesses alike watch closely as these trends unfold. What implications do you see for the economy? Share your thoughts in the comments.
