S job openings decline more than expected in November

WASHINGTON, Jan 7 (Reuters) – U.S. job openings declined more than expected in November, while hiring also slowed, signaling that labor demand continues to weaken amid growing economic uncertainty.

Job openings fell by 303,000 to 7.146 million at the end of November, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) released on Wednesday. This marked a sharper drop than anticipated.

October data was revised lower, showing 7.449 million job openings instead of the previously reported 7.670 million. Economists surveyed by Reuters had expected openings to stand at 7.60 million.

Hiring also eased, dropping by 253,000 to 5.115 million in November, reflecting subdued job growth despite strong economic expansion in the third quarter.

Economists attribute the slowdown largely to policy uncertainty, particularly surrounding import tariffs, which has made businesses cautious about expanding their workforce. Additionally, the increasing adoption of artificial intelligence in certain roles has reduced labor demand.

Many analysts believe the labor market is facing structural challenges rather than a typical cyclical downturn.

The BLS is expected to report on Friday that nonfarm payrolls rose by 60,000 jobs in December, following a gain of 64,000 in November, according to a Reuters survey. Market attention will focus on the unemployment rate for further insight into labor market conditions and the near-term monetary policy outlook.

The unemployment rate is forecast to ease to 4.5% in December, after rising to a more than four-year high of 4.6% in November. November’s reading was partly distorted by a 43-day federal government shutdown, which disrupted data collection.

As a result, the October unemployment rate was not published, marking the first time since tracking began in 1948 that the data was unavailable.