I’m getting a lot of questions about the state of the job market now that we are well into 2025. We’ve all read about the layoffs in tech and other sectors for January, but there is some additional hard data from a recent article in US News & World Report (link to article below).
The U.S. labor market showed signs of cooling down, with job openings in December dropping by 556,000 to 7.6 million, according to the Labor Department. This marks a significant decrease from both the previous month and a year ago, with the professional and business services sector seeing the largest drop by 225,000 openings, followed by health care and social assistance with 180,000 fewer positions. Finance and insurance also saw a notable decline with 136,000 fewer jobs available. Conversely, arts, entertainment, and recreation saw an increase of 65,000 openings. 🎭
The market’s rebalancing reflects a return to normalcy post-COVID-19 disruptions, with hiring and separations balancing out. Despite this, private payroll data from ADP and the upcoming government jobs report for December are expected to show continued, albeit moderated, job growth. Economists predict about 170,000 jobs were added in December, though this could be influenced by seasonal adjustments, weather, and natural disasters like the California wildfires. 🔥
Looking ahead, analysts expect payroll growth to moderate throughout 2025, with labor supply playing a significant role in this slowdown. The Federal Reserve is keeping a close eye on these developments, especially with considerations for interest rate adjustments amid persistent inflation and the impacts of President Donald Trump’s policies. A strong employment report could deter a rate cut in the near term, while a weaker one might keep it on the table. hashtag#jobmarkethashtag#careershashtag#cpacareers
The U.S. labor market showed signs of cooling down, with job openings in December dropping by 556,000 to 7.6 million, according to the Labor Department. This marks a significant decrease from both the previous month and a year ago, with the professional and business services sector seeing the largest drop by 225,000 openings, followed by health care and social assistance with 180,000 fewer positions. Finance and insurance also saw a notable decline with 136,000 fewer jobs available. Conversely, arts, entertainment, and recreation saw an increase of 65,000 openings. 🎭
The market’s rebalancing reflects a return to normalcy post-COVID-19 disruptions, with hiring and separations balancing out. Despite this, private payroll data from ADP and the upcoming government jobs report for December are expected to show continued, albeit moderated, job growth. Economists predict about 170,000 jobs were added in December, though this could be influenced by seasonal adjustments, weather, and natural disasters like the California wildfires. 🔥
Looking ahead, analysts expect payroll growth to moderate throughout 2025, with labor supply playing a significant role in this slowdown. The Federal Reserve is keeping a close eye on these developments, especially with considerations for interest rate adjustments amid persistent inflation and the impacts of President Donald Trump’s policies. A strong employment report could deter a rate cut in the near term, while a weaker one might keep it on the table.
hashtag#jobmarket hashtag#careers hashtag#cpacareers