Jobs data released earlier this week show that the days of carefree job-hopping appear to have come to an end.
In January, the quits rate measured 2.1%, the lowest reading since August 2020, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report.
In addition to the drop in voluntary quits, the report showed that hiring activity and the number of available jobs continued to ease from the record-high levels reached during the pandemic-recovery. Layoffs dipped as well.
Still, the number of job openings — a closely watched measure of labor demand — remains well above pre-pandemic averages, highlighting the continued strength of the labor market. In January, there were an estimated 8.86 million available jobs, down from the upwardly revised 8.89 million in December.
The January total was right in line with what economists had expected. Economists projected job openings would decline to 8.85 million, according to consensus estimates on FactSet.
“Job openings remain relatively high, and that’s the key statistic not only in this set of data, but for the economy,” Robert Frick, corporate economist at Navy Federal Credit Union, said in a statement.
“The openings point to strong hiring continuing, which means more paychecks and good spending,” he said. “At this point, openings look like they’re supporting a soft landing in the jobs market, where monthly hiring hovers between 100,000 and 200,000, a sustainable zone for a sustainable expansion.”
