- US job openings dipped to 11.3 million in January, according to JOLTS data out Wednesday.
- That came in above the median forecast of 10.9 million from economists surveyed by Bloomberg.
- Roughly 4.3 million Americans quit their jobs, hovering just below November's record high.
The labor shortage has officially entered 2022, and it's looking just as intense as it did last year.
US job openings fell slightly to 11.3 million in January from a revised 11.4 million in December, according to Job Openings and Labor Turnover Survey, or JOLTS, data published by the Bureau of Labor Statistics on Wednesday. That came in above the median forecast of 10.9 million openings from economists surveyed by Bloomberg. It also leaves openings near the record highs seen in November and well above pre-pandemic levels.
Openings rose the most at durable goods manufacturers, which added 85,000 job listings through January. Postings decreased across several industries. Accommodation and food services firms led the way with a drop of 288,000 openings. Transportation, warehousing, and utilities businesses shed 132,000 job listings, and the federal government saw openings contract by 60,000.
Education and health services businesses boasted the most openings, ending January with roughly 2.13 million open roles. Professional and business services followed close behind with about 2.07 million openings.
The Wednesday report sheds more light on how the labor market's recovery progressed through January. Recent data showed the economy adding 481,000 nonfarm payrolls through the month despite the Omicron wave peaking on January 10. That tripled the median forecast economists held at the time.
The same report revealed the US created another 678,000 jobs in February, similarly beating forecasts. While the February reading is preliminary and will be revised, the data suggest the labor market is far more insulated from the virus' impact than it was during prior surges in cases.
Still, the JOLTS report suggests strong hiring won't be enough to quickly solve the labor shortage. While job creation has been strong, labor force participation has staged a far slower rebound and still sits far below the pre-pandemic average.
Put simply, millions of Americans aren't working or looking for work just yet. That's left businesses struggling to fill abundant openings as the economy reopens again. There were only 0.6 unemployed people per job opening in January, the same record low seen in December. That means there are nearly two open jobs for every jobless American.
Elevated quits have also weighed on the recovery as workers look for new or higher-paying opportunities. Walkouts dipped to 4.3 million from 4.5 million in January, according to the JOLTS report. That marks an eighth straight month of more than 4 million Americans quitting their job. By comparison, quits averaged about 3.5 million before the pandemic. The report suggests that, while hiring is still running strong, workers are still taking advantage of the openings-heavy economy.
Quitting eased the most in retail trade, with walkouts declining by 69,000 in the sector. Information firms lost 20,000 quits. Conversely, quitting rose by 30,000 in the finance and insurance industry, according to the report.