What's happened
US jobless claims increased slightly last week, and open job postings declined to their lowest in nearly five years. Layoffs are falling, and companies are holding onto workers, indicating a 'low-hire, low-fire' trend amid economic uncertainty. The December jobs report is due Friday.
What's behind the headline?
The latest figures confirm a persistent 'low-hire, low-fire' environment, where companies prefer to retain workers rather than expand. This trend suggests employers are wary of economic prospects, possibly due to ongoing trade tensions and monetary tightening. The decline in open jobs, especially in shipping, warehousing, and hospitality, signals a cautious approach to hiring. Meanwhile, layoffs are decreasing, which could indicate that companies are prioritizing stability over growth. The upcoming December jobs report will clarify whether this slowdown is temporary or signals a more sustained shift. If hiring remains sluggish, it could dampen economic growth and influence Federal Reserve policies, potentially leading to further rate cuts or a pause in tightening. For workers, this environment offers job security but fewer opportunities for advancement or new employment, impacting wage growth and consumer confidence.
What the papers say
AP News reports that jobless claims rose by 8,000 to 208,000 for the week ending January 3, with layoffs decreasing and companies holding onto workers. The report highlights a 'low-hire, low-fire' trend amid economic uncertainty. The NY Post emphasizes that open jobs fell to 7.1 million in November, with layoffs dropping and companies reluctant to add staff, reflecting a cautious labor market. Both sources note that despite solid GDP growth last year, hiring momentum has slowed, influenced by tariffs, high interest rates, and economic uncertainty. The AP article also mentions that the Federal Reserve has cut interest rates in response, with Chair Jerome Powell expressing concern about the labor market's weakness. The contrasting tone between the two sources underscores a cautious outlook: AP focuses on the slowdown and potential implications for the economy, while the NY Post highlights the stability and job security for workers in this environment.
How we got here
Recent data shows a slowdown in US hiring, influenced by tariffs, high interest rates, and economic uncertainty. Despite solid GDP growth last year, job creation has decelerated significantly since March, with companies cautious about adding staff. The Federal Reserve has responded by cutting interest rates, reflecting concerns about the labor market's strength.
Go deeper
Common question
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Why Are Job Openings Declining in November 2026?
Recent labor market data shows a decline in job openings and layoffs, raising questions about what this means for the economy and workers. Many are wondering why hiring has slowed down and what the future holds for the US labor market. Below, we explore the key reasons behind these trends and what they could mean for you.
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The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S