Job openings rise to 6.95 million in January but hiring remains sluggish

U.S. job openings rose to nearly 7 million in January, according to data from the Labor Department cited by the Associated Press, a gain economists said outpaced expectations even as the broader labor market has appeared sluggish.

The Labor Department said there were 6.95 million job openings in January, up from 6.55 million in December.

The report also pointed to other signals in the job market. It said layoffs fell slightly, and that the number of Americans quitting their jobs—an indicator of confidence in their prospects—slipped modestly.

In the months after the COVID-19 lockdowns, job openings surged to levels not seen recently, the report noted. It said openings peaked at a record 12.3 million in March 2022.

Still, the Associated Press described hiring as weak. It said employers cut 92,000 jobs last month and that in 2025 they added fewer than 10,000 jobs a month, the weakest pace outside recession years since 2002.

The story attributed the slowdown to a mix of factors, including high interest rates, uncertainty around President Donald Trump’s policies, and possibly the increasing use of artificial intelligence that appears to be weighing on the labor market.

The AP also connected labor conditions to broader economic momentum, citing a separate report from the Commerce Department. It said growth slowed sharply in the last three months of 2025 to 0.7%, down from the advance of 4.4% in the third quarter and about half of the initial estimate of fourth-quarter growth.

Uncertainty over geopolitical developments was also cited as a factor in the outlook, with the report saying the war in Iran has created considerable uncertainty.

Heather Long, chief economist at Navy Federal Credit Union, said companies were posting more jobs in January but were not actually hiring much. “At least companies were posting more jobs in January. Job openings did rise, but companies weren’t actually hiring much. The United States is in the midst of a hiring recession,” Long said.

Long said the only positive sign was that layoffs remained low but that finding work was still difficult. “The only good news is layoffs also remain low, but it’s hard for anyone looking for a job right now, and the war in Iran and AI adoption are only going to make this spring more challenging for job seekers.”