Job openings rise, layoffs fall

March 13, 2026

Job openings rose in January. There were 6.9 million jobs available, according to the latest Job Openings and Labor Turnover Survey (JOLTS). That is up from 6.6 million in December but down from 7.4 million a year ago.

Today’s release included the annual revision to JOLTS. In 2025, average job openings fell to 7.1 million from 7.3 million. The hiring rate was revised down to 3.3% from 3.4%. Layoffs and quits were flat. Slightly lower openings and hiring do not materially change our understanding of the 2025 labor market: low churn and relatively steady throughout the year.

In January, the ratio of job openings to unemployed job seekers, a measure of balance in the labor market tracked closely by the Federal Reserve, was flat at 0.9. After rounding, it ticked up to 0.94 from 0.87. 

Real-time data from Indeed Hiring Lab show that advertised job postings have been flat since late November. That reversed a downturn in September and October. That shows labor demand has been stable.

Openings in 2025 were mainly revised down at small businesses (firms with 1-49 employees). Small businesses have struggled more from policy shocks and uncertainty. A recent uptick in job gains at small businesses in the ADP employment data suggests they entered the new year with positive momentum.

Job openings rose 370,000 in the private sector. Much of that increase was reversing sharp declines in December, including retail, finance and insurance and healthcare and social assistance. The monthly data are noisy. Openings edged higher in the public sector, driven by state and local government.

Professional and business services job openings fell below 1,000 for the first time since April 2020. Hires and quits rose while layoffs fell. Firms are reorganizing workforces around GenAI. Employment fell in 2025 in the administrative and waste services subindustry of professional and business services; that is likely weighing on openings. 

Hiring was flat at 3.3%. Despite a slight uptick last spring, hiring has been flat for over a year. Professional and business services posted the largest January increase in hiring.

Layoffs fell to 1% from 1.1%. On a three-month moving average basis, the layoff rate at 1% is the lowest it has been in a year and a half. Despite endless news stories about large layoffs, they remain at historically low levels. That is little solace for those who have lost their jobs and face difficulty getting work in the low hire environment. 

Quits were flat at 2%. The Labor Leverage Ratio, a proxy for worker bargaining power, was flat in January. It has increased since last fall.  Pay increases for job changers reached 6.3% in February, the lowest in over five years; that’s according to ADP. Pay growth for job stayers was even lower at 4.5%. That both reflects and shapes the lack of labor market churn.