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The decline was mostly in professional and business services, educational services and the federal government. That was the fewest since May 2021 and was down 207,000 from December. A record 50.6 million people quit in 2022.
“The recent evolution of this measure, despite showing a decline this month, suggests that underlying wage pressure should remain elevated, even though pressures are easing somewhat,” said Marc Giannoni, chief U.S.
Job openings, a measure of labor demand, decreased by 410,000 to 10.8 million on the last day of January. Economists polled by Reuters had forecast 10.5 million job openings. Data for December was revised higher to show 11.2 million job openings instead of the previously reported 11.0 million.
The layoff rate rose to a still-low 1.1% from 1.0% in December.
While the rate remains below its pre-pandemic high of 1.3%, the level of layoffs is now closer to the average of 1.9 million before the onset of the COVID-19 public health crisis. Layoffs rose 461,000 in 2022 to 17.6 million.
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According to a Reuters survey of economists, the Labor Department’s closely watched employment report on Friday is likely to show nonfarm payrolls increasing by 205,000 jobs in February after surging 517,000 in January.
job openings fell less than expected in January and data for the prior month was revised higher, pointing to persistently tight labor market conditions that likely will keep the Federal Reserve on track to raise interest rates for longer.
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Fewer people voluntarily quit their jobs. But the Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday also hinted at some cracks in the labor market.
Layoffs rose to a two-year high in January and job cuts were higher than initially thought in 2022.
“The decline in job openings does not indicate any meaningful improvement in the balance between labor demand and labor supply from the perspective of the Fed,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.
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