Jobs Day in focus as markets decline from record highs

Jobs data released earlier this week shows that the days of carefree job hopping appear to be over.

In January, the job abandonment rate was 2.1%, the lowest reading since August 2020, according to the latest Job Opportunities and Labor Turnover (JOLTS) report.

In addition to the decline in voluntary smoking cessations, the report showed that hiring activity and the number of available jobs continued to fall from the record high levels reached during the pandemic recovery period. Layoffs also decreased.

However, the number of job openings — a closely watched measure of labor demand — remains well above pre-pandemic averages, highlighting the continued strength of the labor market. In January, there were an estimated 8.86 million jobs available, down from the upwardly revised figure of 8.89 million in December.

The January total was exactly in line with what economists had expected. Economists expected job openings to fall to 8.85 million, according to FactSet consensus estimates.

“Employment employment remains relatively high, and that is the key statistic not only in this set of data, but also for the economy,” Robert Fricke, a corporate economist at Marine Federal Credit Union, said in a statement.

“Opportunities indicate continued strong employment, which means more salaries and good spending,” he said. “At this point, employment opportunities appear to support a soft landing in the labor market, with monthly employment between 100,000 and 200,000, a sustainable area for sustained expansion.”