Job listings jumped up across the board in January, with a 2.6% increase in active listings and a 14% bump in created listings over last month. This bump corresponds with the whopper BLS report of 353,000 new jobs in January.
Higher demand touches most of the economy, as listings are up in 75% of U.S. states, across 87% of industries, and for 90% of occupations.
Massive gains coincide with headline-grabbing layoffs in tech, finance, and media as knowledge firms correct for over hiring post-pandemic and align workforces with the highest priority strategic initiatives. Companies in these sectors reported over 82,000 job cuts, the second highest January layoff count since 2009.
Hiring velocity continues to slow, marking a 4th month of slowing. This is a further signal that we are operating near the high water mark of a full employment environment, even as job adds have surged.
In his roundup of predictions for market trends in 2024, LinkUp CEO Toby Dayton expected a stronger and more resilient job market than consensus estimates following a labor demand slump late last year. LinkUp forecasted job growth of 195,000, outpacing consensus estimates. But even our optimistic expectations were exceeded by the staggering BLS report of 353,000 job adds in January.
Despite the highest interest rates in two decades, the job market remains remarkably hardy. Unemployment held steady below 4% for the 24th consecutive month, marking a 50+ year record of labor participation; wage growth climbed 4.5% YoY; and the Consumer Confidence Index is higher than it’s been since December 2021, when pent up demand exploded in the first waning days of the pandemic.
With such vital growth, we’d expect some anxiety of increased inflation, especially as higher wages might be passed onto consumers. But with higher wages also came a boost in labor productivity which rose 3.2% in Q4 to offset elevated labor costs.
Consumers and employers alike are taking an optimistic turn, as both feel increasingly assured that inflation will continue to ebb. And while the spiking heat of the labor market will likely hold off rate decreases longer than Wall Street’s predicted timeline, cuts are surely on the way sometime in 2024.
LinkUp job data provides advance insight and context around sudden surges and dips in the job market—stay ahead of official economic reports with LinkUp. Read on for a full breakdown of job market data for the month of January.