US job openings rise to 7M, but hiring slows

US job openings rise to 7M, but hiring slows

The US labor market has witnessed a surge in job openings, with nearly seven million positions available in January.

The figure is an increase from December's 6.55 million and exceeds economists' expectations.

However, despite this rise, the actual hiring rate has slowed down significantly, indicating a potential hiring recession in the country.

Layoffs and voluntary job exits

Despite the increase in job openings, layoffs have only slightly decreased.

The number of Americans voluntarily leaving their jobs, a sign of confidence in their prospects, has also seen a slight decline.

This indicates that while there are more job opportunities available, the actual hiring process is not keeping pace with this growth.

Factors contributing to hiring recession

The US job market is facing several challenges, including high interest rates, uncertainty over President Donald Trump's policies, and the growing influence of artificial intelligence (AI).

These factors are contributing to a slowdown in hiring.

Heather Long, chief economist at Navy Federal Credit Union, said "The United States is in the midst of a hiring recession,"

Economic growth slowdown and geopolitical tensions

The US economy has shown resilience against President Trump's import taxes and deportations.

However, the Commerce Department recently reported a sharp slowdown in economic growth for the last quarter of 2025, down to 0.7%.

This is half of its initial estimate and a significant drop from the strong 4.4% advance recorded in Q3.

The ongoing war in Iran has further added to the uncertainty surrounding future economic prospects.