The red-hot labor market that warmed the economy in recent months, showed signs of cooling in November, with employers looking to fill fewer positions, fewer workers quitting, and the number of hires falling.
The number of vacant jobs fell to 8.79 million as of the last business day of November from an upwardly revised 8.85 million in the prior month, the Bureau of Labor Statistics said in its monthly report on the Job Openings and Labor Turnover Survey, or JOLTS.
This was close to the 8.75 million median expectation of economists surveyed by Econoday and below the 8.82 million median forecast of analysts surveyed by Bloomberg.
Openings fell in the federal government and transportation, warehousing, and utilities decreased in transportation, warehousing, and utilities. Leisure and hospitality openings also declined.
Openings were up in mining, construction, and durable goods manufacturing. Finance and real estate also saw a rise in openings.
A crucial measure of the labor market is the ratio of openings to unemployed workers. This was to 1.4 to one in November, down from 1.8 to one a year earlier. Typically, this is closer to one to one. At its high point in 2022, the ratio was two to one.
The quits rate is a measure of the share of workers voluntarily leaving their jobs. When it is rising, it is typically a sign of a strengthening labor market. In November, it fell to 2.2 percent from 2.3 percent. This is still an elevated level compared with the decade prior to the pandemic.
In November, the number of hires decreased by 363,000 to 5.5 million.
The Federal Reserve has been hoping that its interest rate hikes will cool off demand for labor without significantly increasing unemployment. The decline in openings is evidence of cooling demand.
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