Looking at the latest trends in the number of unemployed persons per job opening, it’s clear that while the labor market remains competitive, there are still more job openings than there are workers—indicating a candidate-driven market. This dynamic offers our partners plenty of opportunities but also highlights the importance of adapting strategies to secure top talent. Here’s a closer look at what the latest JOLTS report means for recruitment efforts in today’s market.

U.S. Labor Market Update: November 2024 JOLTS Report

The November 2024 Job Openings and Labor Turnover Survey (JOLTS) offers a mixed but largely positive outlook for the U.S. labor market. Here’s a brief snapshot of the key takeaways:

Job Openings: Good News for Business

• Job openings held steady at 8.1 million, which is the highest in six months—showing that there’s still strong demand for talent across the board. While it’s down from last year by about 833,000, it’s still a solid number.

• The job openings rate stayed steady at 4.8%, which means there’s no shortage of opportunities for candidates.

• We saw growth in key industries like professional and business services (+273,000), finance and insurance (+105,000), and private education (+38,000), so these sectors are hot right now. Meanwhile, some industries like information are seeing fewer postings—indicating where demand is a bit softer.

Hires: Slowing Down, But Not Stalling

• Hiring remains steady at 5.3 million, though it’s down by 300,000 from last year. While this may suggest that the pace of hiring is cooling, it also means companies are becoming a bit more selective, which could be a good thing for recruiters.

• Hires rate stayed steady at 3.3%, which tells us that businesses are still actively hiring, just maybe with a bit more caution.

Separations: Quits and Layoffs Hold Steady

• Total separations, including quits, layoffs, and other departures, remained unchanged at 5.1 million, though it’s down by 287,000 compared to the previous year.

• The quits rate dropped to 1.9%, which is the lowest it’s been since the early pandemic days. This suggests people are less confident in jumping ship to find a new job, meaning it might be a little trickier to attract candidates who are actively looking to change roles.

• Layoffs didn’t see much change at 1.8 million, though there was an increase in accommodation and food services (+102,000), indicating that some sectors are feeling more pressure than others.

What This Means for our Partners

More Job Openings, More Opportunities:

Demand for workers is strong, particularly in business services, finance, and education. Focus on these sectors and target passive candidates who may be open to change.

Slower Hiring, But Still Ongoing:

Hiring has slowed, but companies are still recruiting. Candidates may need more nurturing, so focus on building relationships and selling the benefits of new roles.

Decline in Quits:

Fewer people are leaving jobs voluntarily, making it harder to fill roles requiring a switch. Focus on reaching out to motivated, passive job seekers who are cautious but open to opportunities.

Stable Layoffs:

Layoffs remain steady, meaning companies aren’t reducing staff drastically. However, industries like accommodation and food services may need additional support.

Competitive Talent Market:

With more job openings than unemployed workers, competition for top talent is fierce. Speed and efficiency in your recruitment process are key to securing the best candidates quickly.

 

Looking Ahead

While the job market may be cooling slightly, it’s still very much a candidate-driven market. The increased job openings in key sectors and stable demand for hires show there are plenty of opportunities to connect the right candidates with the right roles. The key will be adjusting your recruitment strategies—focus on building relationships, targeting specific industries, and tapping into passive candidates who may not be actively job hunting but are open to a great opportunity.

In short: The labor market is steady, and as a recruiter, you’ve got your work cut out for you—but in a good way. There are plenty of roles to fill, and while things may be moving a little slower than before, the demand for skilled talent is still high. Stay proactive, refine your approach, and be ready to act fast when the right candidate comes along!