Higher interest rates don’t seem to be impacting the U.S. job market.
America’s employers posted 9 million job openings in December, up from November’s 8.9 million, which itself was revised upward in a Tuesday report from the government.
Job openings have gradually — though steadily — declined since hitting a record 12 million in March 2022. Before 2021, monthly openings had never topped 8 million, according to the Associated Press.
Layoffs rose in December, and the number of Americans quitting their jobs dipped to the lowest level since January 2021.
The Federal Reserve’s policymakers raised their benchmark interest rate 11 times between March 2022 and July 2023, bringing it to a 23-year high of around 5.4%.
Higher rates have contributed to a slowdown in hiring, though the pace of job growth remains relatively healthy: U.S. employers added 2.7 million jobs last year, down from 4.8 million in 2022 and a record 7.3 million in 2021.
The Fed has indicated it expects to reverse course and cut rates three times this year, though it’s set to leave rates unchanged after its latest policy meeting ends Wednesday.
“These data — which show demand for workers remains robust — do not support imminent rate cuts,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, told the AP. “They support a cautious approach going forward, so that policymakers can be sure that inflation” will reach their 2% target.
