Summary
The U.S. job market has slowed down, showing less hiring and quitting than a few years ago. Many workers are choosing to stay in their jobs longer, partly because of rising living costs and fewer opportunities to switch jobs. Overall, job turnover is at its lowest in almost ten years.
Key Facts
- Hiring and quitting in the U.S. job market have slowed significantly compared to recent years.
- Pay growth is stable, but the benefits of switching jobs are at their lowest since 2017.
- The Labor Department data shows a steady decline in hiring rates in 2024 and 2025.
- The job turnover rate is now 5.8%, down from 6% the previous year.
- The finance and information sectors have seen flat or decreased turnover rates.
- Many people are staying in their jobs longer to cope with economic uncertainties and costs.
- The labor market is now less dynamic than it was right after the COVID-19 pandemic.
- The economy added 130,000 jobs in January, the highest since December 2024.
