US job openings up to 9 million… highest level in 3 months

US job openings rose unexpectedly in December to the highest level in three months, while fewer Americans left their jobs, suggesting workers are becoming more cautious even as demand remains strong.

Data from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, known as JOLTS, showed the number of job openings rose to 9 million from an upwardly revised reading of 8.9 million the previous month. The December number exceeded all estimates in a Bloomberg survey of economists.

Meanwhile, the number of people who voluntarily left their jobs fell to 3.4 million, the lowest level in nearly three years. The measure has declined significantly in recent months, which may mean that Americans feel less confident in their ability to find other jobs in the current market or obtain new, better-paying jobs.

These data confirm the continued strength of the labor market, which continues to exceed economists’ expectations, and prevents the economy from sliding into recession. However, to ensure inflation returns to target, Fed officials are looking for lower labor demand, ideally through fewer hiring and slower hiring rather than outright job losses.

Policymakers are expected to keep interest rates steady at their highest level in two decades at the end of their policy meeting on Wednesday. While officials have already begun discussing lowering borrowing costs, they have said they want to see a sustained decline in inflation pressures before starting to cut interest rates.

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