U.S. Job Openings Fell Sharply as Labor Demand Quieted

5 February 2026

Last year turned out to be a sobering chapter in the story of the American job market as demand for workers softened and openings declined dramatically from the lofty levels seen in the post-pandemic rebound. According to the latest government employment data, the number of open positions in the U.S. economy fell by nearly one million over the course of 2025, underscoring a notable shift in labour market dynamics as employers became more cautious about expanding their payrolls.

By the end of December the economy showed just over 6.5 million vacancies, a significant drop from about 7.5 million at the end of 2024 and the lowest level of openings in more than five years, according to the monthly Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics.

This reduction in job vacancies reflects a broader cooling of the labour market that has unfolded over the past year. Throughout 2025 employers faced a mix of economic headwinds that influenced hiring decisions, including rising borrowing costs, slowing consumer demand in key sectors, and corporate strategies focused more on cost containment than rapid growth after the pandemic boom.

While headline measures such as the unemployment rate remained relatively low into early 2026, the underlying picture of job creation and openings revealed deeper fragility. Analysts and economists nationwide have noted that while workers are still leaving jobs and firms are still posting positions in many industries, the overall decline in openings suggests that the era of abundant opportunities that defined the recent labour market may be waning.

Observers also point out that the drop in job openings has wider implications for job seekers and economic sentiment. Historically a large number of vacancies has signalled strength in the labour market, giving workers leverage to find new roles and negotiate higher wages. A reduction of nearly a million openings in a single calendar year means the balance of power between employers and job seekers is shifting, with fewer opportunities available relative to the number of people seeking work. This trend has been felt across industries, from tech and professional services to traditional sectors such as manufacturing and retail, where even small reductions in staffing needs can reshape local economies and career paths.

Notably, the contraction in openings has not translated directly into an uptick in unemployment, which stayed fairly stable as workers continued in existing positions and some chose to delay career moves due to economic uncertainty. In addition, certain sectors like healthcare and social services saw continued hiring, moderating the overall decline. Even so, the contrast between still-tight labour supply and diminishing demand for workers has become more pronounced. Corporate leaders and policymakers are watching the trend closely, mindful that a sustained reduction in job openings could influence monetary policy decisions, consumer confidence and broader economic growth patterns in the months ahead.

The near-million-job drop also coincides with revisions to labour data, which together paint a picture of a labour market that is no longer firing on all cylinders. Earlier figures showed more robust openings and job gains, but annual revisions have revealed that the pace of growth was overstated in prior reports, driving home the scale of the recent shift. As the economy transitions out of a period of rapid hiring and expansion, the challenge for workers and businesses alike will be adapting to a landscape where opportunities are more selective and competition for roles more intense.