US job openings rose in January despite expected federal layoffs, according to new JOLTS data.
Federal Cuts and Labor Market
Job openings reached 7.74 million, up from 7.51 million in December, exceeding economists’ forecasts of 7.6 million, highlighting the resilience of the US labor market. However, federal job postings fell from 138,000 to 135,000, likely due to cuts initiated by the Trump administration.
Stable Job Market Amid Layoff Concerns
Despite overall job opening increases, layoff concerns persist. The layoff rate dropped to 1%, and the 'quit rate' reached 2.1%, the highest level since July. While some aspects of the job market have stabilized, unemployment rate and claims have significantly increased since late February.
Federal Reserve's Cautious Stance
The latest job figures are unlikely to convince the Federal Reserve to lower its benchmark interest rate at its upcoming March 19 meeting. The rate has remained steady since January, between 4.25% and 4.50%. Expectations for a rate cut are low, with just a 3% probability. Fed Chair Jerome Powell noted that inflation remains above the target 2% level despite its overall decline.
The US job market shows resilience despite federal cuts and potential economic downturns. Federal Reserve decisions will be crucial for future developments.
