Recent labor market figures indicate a continued slowdown in hiring across the United States at the close of 2024. The number of job openings, a critical gauge of labor demand, decreased to an estimated 7.15 million by the end of November, down from 7.45 million in October. This decline represents the lowest level of available job postings in more than a year, reflecting a broader downward trend in employment opportunities.
Data from the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) showed job vacancies dropping across most sectors, with the notable exceptions of retail and construction, which demonstrated relative stability or gains. Hiring activity mirrored this downward trajectory, with approximately 5.12 million hires in November compared to 5.37 million the previous month. This number marks the lowest hiring volume since mid-2024, indicating a cooling labor market.
Individual industry performances varied, though few experienced net job increases during this period. The information sector saw a modest rise with 12,000 new roles added. Similarly, the federal government expanded its workforce by roughly 11,000 positions, and construction also contributed around 11,000 new jobs. Nevertheless, these gains were relatively small and did not offset declines in other areas.
The hiring rate, which measures the proportion of hires relative to total employment, declined to 3.2 percent. This rate matches the lowest mark observed in over a decade, aside from pandemic-related fluctuations. While the report indicated a decrease in layoffs during November, there was an increase in voluntary resignations, which can be interpreted as a sign of worker confidence despite the slower hiring pace.
Overall, the labor market appears to be characterized by lower turnover, with hiring and firing activities both occurring at reduced rates. This trend highlights a cautious approach by employers, possibly influenced by persistent economic uncertainties including policies affecting trade and immigration patterns.
The November JOLTS release is part of a series of labor market updates concluding with the December jobs report expected to show a gain of approximately 55,000 jobs for that month. Such figures, while positive, would represent a modest finish to a year marked by tepid employment growth.
Further insight into employment changes comes from ADP's December National Employment Report, which recorded a rebound in private-sector hiring following a net job loss in November. Private employers added an estimated 41,000 roles in December, exceeding expectations and signaling some recovery. Expansions were notably strong in health care and education, contributing about 39,000 jobs, and in leisure and hospitality, which added roughly 24,000 positions.
Conversely, some sectors experienced job losses during the same period. The professional and business services segment decreased employment by approximately 29,000 workers, while the information sector shed about 12,000 positions. The contrasting performances highlight disparities in labor demand across different parts of the economy.
Health and leisure sectors' growth aligns with a so-called 'K-shaped' recovery, in which higher-income consumers sustain spending in certain service areas. This trend underscores the uneven nature of economic recovery, where discretionary spending and health services see differing impacts among consumer groups.
Employment changes by company size also reflected a shift. Small businesses reversed prior declines seen in November by increasing hiring in December, while larger firms slightly pulled back their workforce additions. This movement suggests varying strategies and resilience across employer categories.
Wage trends presented a steady increase in pay raises for current employees, holding at 4.4 percent year-over-year in November. Meanwhile, wage growth for individuals changing jobs accelerated to 6.6 percent from 6.3 percent, indicating competitive compensation pressures for new hires or job switchers within the market.