· Job Growth: The U.S. economy added 143,000 nonfarm payroll jobs in January 2025, a decrease from the revised 307,000 jobs added in December 2024.
· Unemployment Rate: The unemployment rate edged down to 4.0% in January 2025, the lowest since May 2024.
· Wage Growth: Average hourly earnings increased by 0.5% in January, contributing to a 4.1% rise over the past year.
· Job Openings: There were 7.6 million job openings at the end of December 2024, a decrease of 556,000 from the previous month, indicating a potential cooling in labor demand.
January 2025 Jobs Report
Every change of administration brings a change in economic philosophy. There are leading and lagging economic indicators with the talent market being a lagging one. It’s a bit of a misnomer that companies quickly cut employees. Employers generally don’t like to cut talent as these are people with families etc. Conversely, employers are cautious when hiring. They need to feel confident that the economy is growing before making commitments to adding new talent.
These two reports are the final ones of the last administration. They indicate a slowing yet stable labor market, with modest employment gains and a slight decrease in the unemployment rate. The decline in job openings suggests a potential cooling in labor demand, while the steady numbers in hires and separations point to ongoing stability.
It will take at least 6 months for the new administration’s policy’s to have a tangible effect on the employment market.
For a deeper dive….
· A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons remained at 7.5%.
· Prime age labor force participation rate (ages 25-54) rose .1% to 83.5%.
· The overall labor force participation held was up .1% to 62.6%. This is still .6% below the level of February 2020.
· In January, average hourly earnings for all employees on private nonfarm payrolls rose by 17 cents, or 0.5 percent, to $35.87. Over the past 12 months, average hourly earnings have increased by 4.1 percent. In January, average hourly earnings of private-sector production and nonsupervisory employees rose by 16 cents, or 0.5 percent, to $30.84.
· The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.1 hours in January. In manufacturing, the average workweek was little changed at 40.0 hours,and overtime was unchanged at 2.8 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls decreased by 0.2 hour to 33.5 hours.
· APD reported that 183,000 jobs were added in October.
Source: ADP, BLS, CNBC, Fox News
JOB OPENINGS AND LABOR TURNOVER – DECEMBER 2024
The number of job openings decreased to 7.6 million on the last business day of December, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and total separations were little changed at 5.5 million and 5.3 million, respectively. Within separations, quits (3.2 million) and layoffs and discharges (1.8 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.
Job Openings
The number of job openings decreased to 7.6 million (-556,000) on the last business day of December and was down by 1.3 million over the year. The job openings rate, at 4.5 percent, decreased over the month. The number of job openings decreased in professional and business services (-225,000), health
care and social assistance (-180,000), and finance and insurance (-136,000). Job openings increased in arts, entertainment, and recreation (+65,000).
Hires
In December, the number of hires changed little at 5.5 million but was down by 325,000 over the year. The hires rate remained unchanged at 3.4 percent over the month. Hires increased in finance and insurance (+48,000).
Separations
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.
The total number of separations in December was little changed at 5.3 million. The total separations rate remained unchanged at 3.3 percent over the month.
In December, the number of quits was little changed at 3.2 million but declined by 242,000 over the year. Over the month, the quits rate was unchanged at 2.0 percent. Quits decreased in transportation, warehousing, and utilities (-42,000).
In December, the number of layoffs and discharges changed little at 1.8 million. The rate remained unchanged at 1.1 percent. Layoffs and discharges increased in transportation, warehousing, and utilities (+87,000), and in mining and logging (+6,000).
The number of other separations was essentially unchanged at 302,000 in December.
Establishment Size Class
In December, establishments with 1 to 9 employees showed little or no change in job openings, hires, total separations, quits, and layoffs and discharges rates. For establishments with 5,000 or more employees, the layoffs and discharges rate and total separations rate increased, while the job openings, hires, and quits rates showed little or no change.
November 2024 Revisions
The number of job openings for November was revised up by 58,000 to 8.2 million, the number of hires was revised up by 104,000 to 5.4 million, and the number of total separations was revised up by 105,000 to 5.2 million. Within separations, the number of quits was revised up by 65,000 to 3.1 million, and the number of layoffs and discharges was revised up by 35,000 to 1.8 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
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The Job Openings and Labor Turnover Survey estimates for January 2025 are scheduled to be released on Tuesday, March 11, 2025, at 10:00 a.m. (ET).
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