Hiring Remains Flat While Layoffs Edge Down in January

There was little change in job openings in January, as they increased by 396,000, rebounding from the five-year low recorded in December and reaching 6.9 million, according to Job Openings and Labor Turnover Survey (JOLTS) data published Friday (March 13) by the Bureau of Labor Statistics.

The job openings rate was 4.2%. Private job openings increased by 370,000, bringing the total to 6.2 million.

Across industries, only a few showed declines in January. Professional and business services decreased by 190,000 in January and 332,000 over the last two months. Construction openings declined by 14,000, real estate by 15,000, and arts, entertainment, and recreation by 12,000. Among the industries with the largest gains, finance and insurance rose by 184,000, nearly tripling the number of openings, followed by health care and social assistance, which grew by 150,000, and retail trade, which increased by 130,000.

Hires remained unchanged for the month at 5.3 million. Transportation, warehousing, and utilities reduced hiring by 67,000, while professional and business services recorded the largest increase in hires, rising by 35,000. Accommodation and food services registered 27,000 more hires, while retail trade added 17,000.

Separations continued their oscillating trend, declining by 98,000, of which 91,000 were in the private sector. Quits declined by 88,000 in January, layoffs fell by 35,000, while other separations (such as retirement, disability, or transfers) rose by 25,000, bringing totals to 3.1 million, 1.6 million, and 337,000, respectively.

The private sector saw 90,000 fewer quits, for a total of 2.9 million. The decline was largely driven by trade, transportation, and utilities, which fell 91,000 to 642,000, with a particularly sharp drop in retail trade, which fell 69,000 to 418,000, and transportation, warehousing, and utilities, which fell 27,000 to 122,000. Quits also declined in health care and social assistance (down 48,000) and manufacturing (down 18,000). In contrast, some industries saw increases, including professional and business services (up 52,000) and leisure and hospitality (up 16,000).

Meanwhile, layoffs in the private sector declined by 40,000, reaching their lowest level since May 2025. The largest decline occurred in transportation, warehousing, and utilities, which fell by 55,000. Layoffs also declined in professional and business services (down 35,000). However, some sectors experienced increases, particularly accommodation and food services, where layoffs rose 25,000, and construction, which increased by 15,000.

Companies with fewer than 50 employees increased their hiring levels by 225,000, which was offset by a decrease in hiring among companies with 50 to 1,000 employees. Meanwhile, all company sizes reduced their separations levels, except for firms with 10 to 49 employees, which increased their layoffs by 72,000 and their quits by 141,000.