U.S. job openings rose in January while layoffs declined and workers continued to quit jobs at a steady pace, pointing to firm labor demand even as hiring remained restrained.
Employers posted 6.9 million job openings in January, up from 6.6 million in December and above economists’ expectations of about 6.75 million, according to the Labor Department’s Job Openings and Labor Turnover Survey released Friday. The job openings rate rose to 4.2 percent from 4.0 percent the prior month.
The increase suggests companies entered the year with somewhat stronger demand for workers after a soft finish to 2025. Openings rose in several sectors, including finance and insurance, health care and social assistance, retail, and leisure and hospitality.
At the same time, layoffs declined. Employers reported 1.63 million layoffs and discharges in January, down from 1.67 million in December, pushing the layoffs rate down to 1.0 percent from 1.1 percent. The level of layoffs remains near historically low levels.
Worker confidence also held up. The quits rate remained at 2.0 percent, with 3.14 million workers voluntarily leaving their jobs during the month. Economists often view quits as a gauge of worker confidence because employees are more likely to leave jobs when they believe they can find new ones.
Hiring itself changed little. Employers added 5.29 million hires in January, roughly in line with December, leaving the hires rate unchanged at 3.3 percent.
A relatively modest pace of hiring alongside low layoffs reflects what economists often describe as a “low-hire, low-fire” labor market, in which firms are cautious about expanding payrolls but reluctant to cut workers they already have. With fewer workers entering the labor pool and fewer workers losing jobs, hiring volumes are naturally lower even when labor demand is holding up.
The January report suggests that while hiring has not accelerated, labor demand remains resilient, with employers continuing to post new positions and holding on to existing workers.
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