U.S. Job Openings Sink to Lowest Level Since 2020 as Hiring Slows/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. job openings dropped to 6.5 million in December 2025 — the lowest level since September 2020. Economists see it as a warning sign that hiring remains sluggish despite strong economic growth. Layoffs rose, quits held steady, and concerns mount over a prolonged “hiring recession.”
Labor Market Quick Look
- Job Openings: Fell to 6.5 million, lowest since 2020
- Layoffs: Rose slightly in December
- Quit Rate: Steady at 3.2 million
- Private Hiring: ADP reports only 22,000 jobs added in January
- Economist Outlook: Hiring slowdown expected to continue
- January Forecast: 70,000 jobs expected in next week’s report
- Long-Term Concern: AI may fuel growth without job creation
U.S. Job Openings Sink to Lowest Level Since 2020 as Hiring Slows: Deep Look
WASHINGTON (AP) — U.S. employers posted just 6.5 million job openings in December 2025, the fewest since the height of the pandemic more than five years ago, according to new data from the Labor Department released Thursday. The figure marks a sharp drop from 6.9 million in November and fell below economists’ expectations.
Confidence Falters as Quit Rates Stay Flat
The number of workers voluntarily leaving their jobs — often a measure of confidence in the labor market — held steady at 3.2 million. Layoffs ticked up slightly, further underscoring the cooling pace of hiring across the economy.
A Disconnect Between Growth and Hiring
Despite robust economic growth — the U.S. economy expanded at its fastest rate in two years from July through September — hiring has not kept up. Since March 2025, the economy has added just 28,000 jobs per month on average. That’s a stark contrast to the post-COVID boom years of 2021–2023, when monthly job gains routinely topped 400,000.
When January’s employment report is released next Wednesday, analysts expect a modest rebound to around 70,000 jobs added, up from December’s weak 50,000. Still, signs point to a broader hiring slowdown.
Private Hiring Disappoints, Layoffs Surge
Payroll provider ADP said Wednesday that private employers added only 22,000 jobs last month — a major miss compared to forecasts. Meanwhile, the firm Challenger, Gray & Christmas reported that U.S. companies cut over 108,000 jobs in January — the highest monthly total since October and the worst January for job losses since the 2009 financial crisis.
Economists Warn of Prolonged Hiring Recession
“The hiring recession isn’t going to end anytime soon,” wrote Heather Long, chief economist at Navy Federal Credit Union. “It’s yet another sign of how little hiring — or interest in hiring — is happening in this economy.”
Uncertainty Ahead: Growth Without Jobs?
Economists remain split on what happens next. Will hiring pick up to match the pace of economic growth? Or will that growth decelerate in line with a weak labor market? Some experts suggest a third scenario: that artificial intelligence and automation are enabling economic expansion without the need for significant new job creation.
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