Job openings nearly equal job seekers

February 19, 2025

Total job openings in the United States declined to 7.6 million at the end of December from 8.1 million a month earlier. Job openings have steadily cooled since June, measured on a three-month moving average basis.

Several large states drove the decline in job openings in December: California (-117,000), Florida (-73,000), Texas (-53,000) and Colorado (-39,000). Those monthly declines resulted in a return to prior levels. The same steady cooling trend is evident in the state and the national data. Note: The data in the Job Openings and Labor Turnover Survey (JOLTS) can be noisy and fluctuate each month.

Real-time data from Indeed show that job postings have remained steady in several large states since the beginning of this year. California likely saw a temporary drop in labor demand in January due to the wildfires. In other large states, including New York, Florida and Ohio, demand appears to be increasing. That bodes well for the labor market.

The ratio of job openings to unemployed job seekers, a measure of balance in the labor market tracked closely by Federal Reserve officials, remained flat at 1.1 for the sixth straight month. The ratio decreased month-over-month in 42 states and Washington, DC, reflecting the drop in job openings.

Hiring and layoffs came in flat for most states. That has been the story of the labor market since the second half of 2024. It has been difficult trying to find a new job, but those who have jobs feel relatively secure. In Pennsylvania, hires actually increased while layoffs decreased month-over-month. That is a positive signal.

The quits rate changed little in most states but it increased to 2.6% at the end of December from 1.8% in Texas; it decreased to 1.5% from 2.4% in Florida. Data from ADP show that the wage premium for switching jobs edged lower to 6.8% in January, down from 7.7% a year ago. Overall, workers are staying put.

At the national level, the unemployment rate ticked down to 4.01% in January from 4.09% in December. At the state level, between December 2023 and December 2024, the unemployment rate increased in 27 states and the District of Columbia; it decreased in just six states.