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

The Labor Department reported 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 conditions elsewhere.

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. But, the job market has remained durable throughout.

Employers have added a robust average of 244,000 jobs a month over the past year, including 353,000 in January and 275,000 in February.

The unemployment rate rose slightly to 3.9%, however this now marks the 25th straight month it’s come in below 4% — the longest such streak since the 1960s.

The job market is cooling from the red-hot days of 2022 and 2023 in a mostly painless way — through fewer openings. Despite a wave of high-profile layoffs, the number of job cuts across the economy remains relatively low.

Source: Associated Press