US Job Openings Increased to 9.03 Million in December Last Year...Voluntary Resignations Decrease

9.03 Million Job Openings in December... Exceeding Market Expectations

Last month, the number of job openings at U.S. companies increased to the highest level in three months. Meanwhile, voluntary resignations by workers fell to the lowest level in three years.

According to the Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Department of Labor on the 30th (local time), the number of job openings at U.S. companies in December last year was 9.026 million, an increase of 101,000 from the previous month. This is the highest level in three months and exceeds the market forecast of 8.75 million.

The number of job openings at U.S. companies is an indicator showing the demand flow in the labor market. The scale of job openings peaked at 12 million in March 2022 and had been steadily declining, but last month it slightly increased, indicating that resilience is still being maintained. An increase in job openings can lead to wage increases and inflation due to excess demand, so the U.S. Federal Reserve (Fed) is closely watching this indicator.

On the other hand, voluntary resignations dropped to 3.4 million, the lowest level in three years since January 2021. Although the number of job openings increased, it is interpreted as a sign that workers are less confident about finding other jobs or higher-paying jobs.

Stuart Paul, a Bloomberg economist, said, "Workers are not confident that they can find new jobs with higher pay, and the quit rate is low, returning to pre-COVID-19 pandemic levels. The wage-driven inflationary pressures in the labor market will gradually disappear."

Meanwhile, consumer sentiment toward the U.S. economy has significantly improved. On the same day, the economic research group Conference Board announced that the Consumer Confidence Index for January this year rose by 6.8 points from the previous month to 114.8 (based on 1985=100). This is the highest level in 2 years and 1 month since December 2021.

Dana Peterson, chief economist at the Conference Board, stated, "The slowdown in inflation, expectations of interest rate cuts, and favorable employment conditions seem to be reflected in the rise of the Consumer Confidence Index in January."