U.S. job openings increased in January while layoffs declined and workers continued to quit jobs at a steady pace, suggesting labor demand remained solid even as hiring activity stayed relatively restrained.
Employers posted 6.9 million job openings in January, up from 6.6 million in December and higher than economists’ expectations of about 6.75 million, according to the Labor Department’s Job Openings and Labor Turnover Survey released Friday.
The job openings rate rose to 4.2 percent from 4.0 percent the previous month.
The increase indicates companies entered the year with somewhat stronger demand for workers after a softer close to 2025. Openings rose across several industries, including finance and insurance, health care and social assistance, retail, and leisure and hospitality.
At the same time, layoffs declined modestly.
Employers reported 1.63 million layoffs and discharges in January, down from 1.67 million in December. That pushed the layoffs rate down to 1.0 percent from 1.1 percent the prior month.
The level of layoffs remains close to historically low levels.
Worker confidence also appeared stable. The quits rate held steady at 2.0 percent, with about 3.14 million workers voluntarily leaving their jobs during the month.
Economists often view quits as a key indicator of worker confidence because employees are generally more willing to leave their jobs when they believe other opportunities are available.
Hiring itself showed little change.
Employers reported 5.29 million hires in January, roughly in line with December, leaving the hires rate unchanged at 3.3 percent.
Economists often describe this combination of steady job openings, low layoffs, and moderate hiring as a “low-hire, low-fire” labor market.
In such an environment, companies remain cautious about expanding payrolls but are also reluctant to lay off existing workers.
With fewer workers losing jobs and fewer entering the labor force at once, hiring volumes can remain relatively modest even when demand for labor remains steady.
The January report suggests that although hiring has not significantly accelerated, the labor market continues to show resilience, with employers posting new openings and holding onto existing employees.
