Job openings sink to a postpandemic low. The economy is barely adding any new jobs.

By Jeffry Bartash

The good news is that layoffs are also extremely low

Some companies are still hiring, but jobs are not as easy to find as they were a few years ago.

The number of job openings in December fell to the lowest level in eight years, excluding the COVID-19 pandemic era, underscoring the fragility of the U.S. labor market in the new year.

U.S. job openings dropped by 386,000 in December to 6.5 million, the government said in a report delayed by federal shutdowns. That's the lowest total since 2017, excluding the 2020-21 time frame.

New hires in December totaled 5.29 million, but they were offset by 5.25 million separations - layoffs, job quitters, retirements, deaths and so forth.

The exceedingly small gap between hires and separations illustrates just how weak the labor market has gotten since last spring. The economy is barely adding net new workers.

Although the report is dated, the early evidence this year suggests the labor market is still depressed. Layoffs are low, but hiring is the weakest in 15 years.

Key details: Job openings fell sharply in December at retailers, financial companies and professional businesses that employ many white-collar workers. Restaurants, however, posted more job openings.

In a bit of good news, the rate of layoffs was unchanged and stayed near a record low.

Big picture: The U.S. is facing an unusual paradox. The economy is growing at a surprisingly strong pace - but it's hardly creating any new jobs.

Uncertainty spawned by higher tariffs appears to be a chief cause; that uncertainty hasn't abated.

The upshot: The U.S. isn't likely to see a big pickup in hiring this year even if the economy keeps growing at an above-average speed.

Market reaction: The Dow Jones Industrial Average DJIA and the S&P 500 SPX sank in Thursday trading to extend a recent losing streak.

-Jeffry Bartash

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02-05-26 1050ET