U.S. job openings rose unexpectedly in January, underscoring a resilient labor market that continues to defy pessimistic forecasts about the impact of President Donald Trump’s economic policies.
Job openings climbed to 7.74 million in January, up from a revised 7.51 million in December, according to data released Tuesday by the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). The increase surpassed economists’ expectations of 7.6 million openings.
The increase in openings was driven primarily by gains in the real estate, construction, retail, manufacturing, and financial sectors, suggesting continued strength in key areas of the economy. Despite widespread media speculation about negative economic impacts from the Trump administration’s tariff policies and federal workforce reductions, the labor market data indicate ongoing stability.
Job openings in manufacturing, a politically and economically sensitive sector of the economy, climbed by 30,000, the first significant increase since and the highest since September. Hires also climbed by 30,000, the first increase since September. The number of factory workers quitting their jobs rose, as did the rate of quits, signs that workers in the sector are more confident.
The layoffs rate remained steady at a historically low 1.0 percent, reflecting employers’ continued reluctance to shed workers. Meanwhile, the quits rate—a key indicator of worker confidence—rose to 2.1 percent, the highest level since July 2024. An elevated quits rate typically signals that workers feel confident in their ability to find new jobs.
Hiring remained stable in January, with the hiring rate unchanged at 3.4 percent. While overall hiring numbers have moderated since the peak recovery years immediately following the pandemic, January’s figures suggest employers are maintaining steady employment levels rather than aggressively downsizing.
The JOLTS report contrasts sharply with recent narratives in media outlets and some Wall Street analysts suggesting that President Trump’s policies are undermining economic stability. Rather than signaling economic distress, the latest labor figures reinforce the picture of a balanced labor market, characterized by moderate hiring activity and relatively low layoffs.
Federal job openings experienced only a marginal decrease, falling by just 3,000 openings, providing little evidence to substantiate claims of significant harm from federal workforce cuts at this stage. Total separations—which include quits and layoffs—in the federal government were unchanged in January and down slightly from a year ago. Hires actually increased by 3,000.
The stability reflected in January’s data may influence the Federal Reserve’s upcoming decisions on interest rates. Economists remain divided on how quickly the central bank will return to cutting interest rates and how many cuts we are likely to see this year, with many viewing labor market conditions as a key to predicting Fed policy.
Despite the positive labor data, broader market sentiment remains cautious. Stock indices fell Tuesday amid ongoing uncertainty about trade relations and future economic policies, including the budget resolution being debated on Capitol Hill and efforts to preserve and expand the tax cuts enacted in Trump’s first term.
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