Jan 2026: US Job Openings Fall to 5-Year Low, Labor Market Cooling

The Bureau of Labor Statistics (BLS) reported January 2026 job openings in the JOLTS survey declined to 6.542 million, the lowest since September 2020, and 386,000 below the revised November 2025 level. Employers hired 5.293 million in December, while separations rose slightly. The job-to-unemployed ratio remained at 0.9, the lowest since early 2021, signaling tight labor markets are easing as vacancies fall below the unemployed. Key declines in December were concentrated in professional and business services, retail, and finance and insurance; transportation and warehousing saw larger separations. Government job openings increased modestly. Active job separations and voluntary quits remained near pandemic lows, indicating weaker labor-force mobility. Data also show a buildup of hiring pressure: announced layoffs in major firms more than doubled year-over-year in January, and consumers’ perceptions of difficulty finding work reached a 2021-level high. The closely watched nonfarm pay report next month will test whether the labor market continues to moderate. Note: The Fed’s January meeting kept rates unchanged, and officials said a weakening labor market would be a key factor in future policy decisions.