WASHINGTON — U.S. employers added far fewer openings in November, signaling that hiring has not picked up even as overall growth shows signs of strength. The Labor Department said Wednesday that there were 7.1 million open jobs at the end of November, down from 7.4 million in October. While layoffs declined, companies continued to hold onto workers rather than add to payrolls.
A ‘Low-Hire, Low-Fire’ Labor Market
The data portray a “low-hire, low-fire” labor market in which workers enjoy a degree of job security, but those seeking new opportunities face a tougher hunt. The December-to-date trajectory remains uncertain, even as broader indicators point to solid economic momentum. Growth exceeded 4% at an annual rate in the July-September quarter, and economists expect the pace to ease but stay positive in the final quarter of 2025.
A central question this year is whether hiring will accelerate to align with healthy growth, or if the softer job gains will restrain the economy. Another possibility some researchers weigh: automation and AI could support steady output without generating many new jobs.
Awaiting Clarity From December Jobs Data
Thursday’s more complete picture will come with the release of the December employment report, due Friday, which will help clarify whether the November print was a lull or the start of a slower hiring cycle.
Job Openings Hit Near Five-Year Lows
The November count marks the fewest job openings since September 2024, and outside that month, it sits at the lowest level in nearly five years. Openings fell notably in shipping and warehousing, restaurants and hotels, and state and local government, while gains were observed in retail and construction.
Worker Confidence Shows Modest Uptick
Quits — a proxy for workers’ confidence in finding better opportunities — ticked up in November, though the level remains historically subdued. About 3.16 million Americans voluntarily left their jobs, up from just under 3 million in October. While an increase can signal confidence in the job market, the overall quit rate remains well below pre-pandemic norms.
JOLTS Report Highlights Cautious Hiring
The JOLTS report, short for the Job Openings and Labor Turnover Survey, provides a critical snapshot of hiring and firing dynamics after last fall’s government shutdown delayed similar data. The latest figures reinforce a cautious hiring environment even as the broader economy marches forward.
ADP Data Suggests Stabilization
Separately, payroll processor ADP reported that private employers added 41,000 jobs in December, rebounding from a 29,000-job decline in November. The ADP figures are based on payroll data from about 26 million workers and often serve as a preview of the government’s broader payroll report.
The December pickup was driven in part by small firms, defined as those with fewer than 50 workers, which added 9,000 jobs after cutting positions in recent months.
Economists See Mixed but Improving Signals
Economists see the December uptick as a sign that the labor market may be stabilizing, though progress remains uneven. “It is a slower labor market,” said Nela Richardson, chief economist at ADP. “The labor market isn’t falling off a cliff. We still see some job growth, and we don’t see an uptick in layoffs.”
The Bank of America Institute, which tracks how paychecks land in consumers’ accounts, also offered a cautiously optimistic reading. It reported signs of improved hiring in December, with payroll gains rising to about 0.6% year-over-year, up from roughly 0.2% in November. “It does look like, in our data, that the worst of the slowdown could be behind us,” said David Tinsley, senior economist at the institute.
Outlook for the Labor Market
The November data as a whole show that the job market is slowly getting used to slower hiring while still benefiting from a strong economy. It remains unclear whether job growth will strengthen in December or if hiring will stay subdued as businesses weigh demand, costs, inflation, and policy changes affecting the broader economy.
