U.S. employers posted 8.1 million job openings in November, the highest level in six months, according to government data released on Tuesday.
The sharp increase, which exceeded even the most optimistic expectations of economists surveyed by Econoday, points to a labor market that appears to be gathering strength as businesses respond to the more pro-growth economic policies expected under the incoming Trump administration. The median expectation was for 7.65 million openings and the top of the range was 7.8 million.
The latest Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) showed a rise from a revised 7.8 million in October. The increase was driven by a jump in postings within professional and business services, as well as the finance and insurance sectors. In contrast, sectors like accommodation, food services, and manufacturing saw a reduction in available positions, highlighting lingering disparities in demand across different parts of the economy and weakness in the factor sector.
The rebound in job openings follows nearly three years of a downward trend that had sparked concerns about a softening labor market and led the Federal Reserve to cut interest rates multiple times. However, the recent data, along with stronger-than-expected job growth in recent months and a surge in business confidence, suggests that employers may be accelerating hiring and investment in anticipation of a more business-friendly policy environment. The shift in sentiment was sparked by Trump’s election victory, which has fueled optimism in markets and boardrooms.
Friday’s upcoming employment report for December is expected to show that hiring slowed slightly but remained healthy, with the unemployment rate projected to hold steady at 4.2 percent. Even with signs of moderation, economists note that the broader trend in job growth remains strong, underscoring a labor market that continues to defy expectations.
As businesses prepare for the possibility of lower taxes, deregulation, and a shift toward a more domestic-focused trade policy under Trump, the labor market may see further gains in the coming months. Whether this momentum can be sustained will depend on how quickly the new administration implements its policy agenda and how markets respond.
On Capitol Hill, some Republican lawmakers are considering delaying taking up Trump’s tax proposals until later this year. Some of Trump’s allies, including former White House economic adviser Larry Kudlow, argue that a delay could put the tax cuts at risk and derail the surge in economic optimism.