US Job Openings Rebound to Five-Month Peak, Even as Layoffs Increase

US job openings in October inched up to their highest level in five months, but a slowdown in hiring paired with a rise in layoffs signaled that the labor market continued to lose momentum.

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Fresh data from the Bureau of Labor Statistics on Tuesday showed that openings edged up to 7.67 million in October, just above the prior month’s 7.66 million. The figure also beat the median forecast from economists survey. Both months’ numbers were released later than scheduled due to the extended government shutdown.

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Even with the slight increase, the gain was concentrated in only a few industries namely retail, wholesale trade, and health care. Of these sectors, health care has consistently been the strongest engine of job creation throughout the year.

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At the same time, layoffs climbed. According to the JOLTS report, the number of workers let go rose to 1.85 million in October, the highest level since early 2023. The uptick was driven in part by cuts in leisure and hospitality as well as in manufacturing. Hiring also pulled back sharply, falling by 218,000 from September to 5.15 million.

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These shifts reflect a labor market that is cooling in select areas as businesses adapt to rising costs and an uncertain outlook. Higher expenses tied to US trade policy, along with broader economic concerns, have pushed some employers to scale back. Additional indicators point toward an increase in announced job cuts, reinforcing the idea that the labor market is gradually losing steam.

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Growing worries about the economic backdrop have shaped investor expectations for the Federal Reserve. Markets are overwhelmingly anticipating that policymakers will deliver a quarter-point interest-rate cut on Wednesday. Following the JOLTS release, Treasury yields edged higher, while the S&P 500 continued to trade in positive territory.

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One of the most telling data points in the report was the continued drop in the quits rate the share of workers voluntarily leaving their jobs. The rate slipped to its lowest reading since May 2020, suggesting that Americans are feeling less confident about finding better opportunities elsewhere.

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During tighter labor markets, the quits rate tends to climb as people take advantage of plentiful openings and strong competition for talent. Its decline now underscores a shift toward a more cautious, uncertain environment for job seekers.

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Still, some economists remain skeptical of the JOLTS survey. The report has faced criticism for its low response rate and occasionally large revisions, which can make month-to-month comparisons difficult.

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To get a more complete picture, analysts often look to alternative measures. One such indicator Indeed’s job-posting index, which updates daily showed a decline in available roles in October compared with September, though the platform reported a rebound in openings during November.

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Together, the mixed data paint a picture of a labor market that is not collapsing but is steadily normalizing after years of intense hiring demand. Openings remain historically high, but layoffs are edging up, hiring is slowing, and workers are increasingly hesitant to quit.

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For the Fed, these trends add nuance to an already delicate decision-making process as officials try to balance easing inflation with maintaining economic stability.

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