Vacancy withdrawn
The US labor market is becoming less tight. As of November 2023, the latest data, there are 1.4 job openings for every unemployed person down from a peak of 2.0 in March 2022. Let’s look at both sides of the equation. The number of job openings has decreased by 27% while the number of unemployed persons has increased only 5% over the period March 2022 to November 2023. Thus, fewer job openings are the main driver of the lower ratio.
Perhaps as a response to fewer job openings, the number of people quitting their job has decreased to 3.5 million in November 2023. That compares to an average of 4.1 million people quitting their job each month during 2021 and 2022. Another sign of a cooler labor market is the number of hires dropping to 5.5 million in November 2023 compared to a monthly average of 6.4 million during 2021 and 2022. Although the US labor market seems to be cooling off, unemployment and layoffs remain historically low.
Source: US Bureau of Labor Statistics, January 2024.