US Job Openings Increase Despite Sluggish Labor Market/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. job openings rose to nearly 7 million in January, surpassing economists’ expectations. Despite the increase in available positions, hiring remains weak and the labor market shows signs of slowing. Economists say uncertainty from global conflicts, economic policy and artificial intelligence could weigh on hiring in the months ahead.
US Job Openings January 2026 Quick Looks
- U.S. job openings increased to 6.95 million in January.
- The figure rose from 6.55 million in December, beating forecasts.
- Layoffs declined slightly during the month.
- Fewer workers quit their jobs, signaling reduced confidence in the labor market.
- Hiring remains weak despite more available job postings.
- The labor market has slowed compared with the post-pandemic hiring boom.
- Economic uncertainty and artificial intelligence adoption may affect future hiring.
Deep Look
US Job Openings Rise Despite Weak Hiring
Job openings in the United States rose unexpectedly at the start of the year, even as the broader labor market continues to show signs of slowing.
The Labor Department reported Friday that U.S. employers posted 6.95 million open positions in January, up from 6.55 million in December. The increase exceeded economists’ expectations and suggests that companies are still seeking workers despite economic uncertainty.
While the rise in job postings offers a positive signal for the economy, other indicators show that hiring remains subdued and the job market is losing momentum.
Hiring Remains Weak
Even though more jobs were advertised, businesses did not significantly increase hiring during the month.
The number of layoffs declined slightly, indicating that employers are not cutting large numbers of workers. However, the share of workers voluntarily leaving their jobs also slipped.
Economists view voluntary resignations as an indicator of worker confidence, because employees are more likely to quit when they believe better opportunities are available. A drop in resignations suggests that many workers feel less confident about switching jobs.
Labor Market Far From Pandemic Peak
The latest figures highlight how dramatically the U.S. job market has cooled since the surge in hiring that followed the COVID-19 pandemic.
In March 2022, job openings reached a record 12.3 million, reflecting intense competition among companies for workers during the economic recovery.
Today’s numbers remain well below that peak, reflecting a more cautious hiring environment.
Hiring Slowdown Continues
Recent employment data show that job growth has weakened significantly.
Employers eliminated 92,000 jobs last month, and overall hiring throughout 2025 averaged fewer than 10,000 new jobs per month.
That level represents the weakest pace of job growth outside of recession periods since 2002.
Economic Pressures
Several economic factors are contributing to the slowdown in hiring.
High interest rates have made borrowing more expensive for businesses and consumers, which can discourage investment and expansion.
In addition, uncertainty surrounding President Donald Trump’s economic policies, including tariffs and immigration enforcement, has created challenges for some industries.
At the same time, the growing use of artificial intelligence technologies may also be changing how companies approach hiring.
Global Uncertainty Adds Pressure
Global developments are also affecting the economic outlook.
The ongoing war involving Iran has pushed energy prices higher and created additional uncertainty for businesses and investors.
Meanwhile, the Commerce Department recently reported that U.S. economic growth slowed sharply in the fourth quarter of 2025, expanding at just 0.7%, far below earlier estimates.
Economists Warn Of Hiring “Recession”
Some economists say the labor market may already be experiencing what they describe as a “hiring recession.”
Heather Long, chief economist at Navy Federal Credit Union, said the increase in job postings provides some positive news but does not fully offset the broader slowdown.
“At least companies were posting more jobs in January,” Long said. “But companies weren’t actually hiring much.”
She added that job seekers may continue to face challenges in the months ahead as economic uncertainty grows.
“The only good news is layoffs remain low,” Long said. “But it’s still difficult for many people looking for work, and the war in Iran and AI adoption could make this spring more challenging for job seekers.”
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