US Job Openings Tumble to 2-Year Low in November

In November, U.S. job openings decreased to 8.79 million, the lowest figure since March 2021, as reported by the Bureau of Labor Statistics. This decline from the previous month's revised total of 8.85 million openings suggests a cooling in the labor market amid persistently high interest rates. The drop in job openings was evident across several sectors, including transportation, warehousing, and utilities, as well as in federal government positions, although an increase was observed in the wholesale trade sector.

Despite the decrease in job openings, the labor market's strength is reflected in the unemployment rate, which slightly dropped to 3.7% in November, with the economy adding nearly 200,000 jobs. Additionally, the quits rate, which measures job separations initiated by employees and can serve as an indicator of workers' confidence, declined to 2.2% from 2.3% in October. While job vacancies have reduced significantly from the record high of 12 million in March 2022, they remain above pre-pandemic levels, indicating a still-robust labor market. The Federal Reserve has indicated that an economic slowdown may be necessary to achieve its 2% inflation target, and some analysts anticipate the possibility of an interest rate cut as early as March.