US labor market cools as job openings hit five-year low and jobless claims rise

WASHINGTON — U.S. job openings fell to their lowest level in more than five years in December 2025, while downward revisions to previous data signaled a weakening labor market at year’s end.

Available positions dropped by 386,000 to 6.542 million on the last day of December, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, or JOLTS report, released Thursday. This represents the lowest level since September 2020.

The government also revised November’s data down to 6.928 million openings from the previously reported 7.146 million. The December figures fell significantly short of the 7.20 million vacancies forecast by economists surveyed by Reuters.

Separately, a Labor Department report showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week. Initial jobless claims increased by 22,000 to 231,000.

Economists suggested the spike may be linked to recent snowstorms and seasonal data adjustments, noting that the underlying trend still points toward a stable job market.

The release of the more comprehensive monthly employment report remains delayed as a result of a federal government shutdown.

The U.S. labor market is currently navigating a period of controlled deceleration, balancing between post-pandemic exuberance and the looming threat of a downturn. Recent data suggests that while the economy is cooling, it has yet to trigger recessionary alarms. For Federal Reserve officials, the drop in job vacancies to a five-year low is a welcome signal; it suggests that the central bank’s aggressive tightening cycle is successfully tempering inflation without inciting a broad-based labor market collapse.

This dynamic is increasingly defined by a "low hire, low fire" regime. While businesses remain hesitant to expand headcount—a clear reflection of macroeconomic uncertainty—they are simultaneously reluctant to part with existing talent. This behavior underscores a cautious optimism that a deep recession is not imminent, resulting in a fragile yet persistent equilibrium.

While a recent uptick in initial jobless claims has raised some eyebrows, market analysts largely attribute the volatility to transitory factors and technical noise rather than a structural fracture in the employment landscape. The more pressing challenge is the current lack of transparency. With official government reporting stalled by administrative disruptions, policymakers and investors are forced to operate in an information vacuum. This data blackout complicates the Fed’s "data-dependent" approach and introduces a layer of avoidable uncertainty to global markets.

For Vietnamese-American small business owners, particularly those in the nail salon and restaurant sectors, a "low-hiring" labor market presents a complex trade-off. On one hand, the pressure to retain staff may ease as fewer outside opportunities are available for employees. On the other hand, this cooling market often signals a dip in consumer spending power, which directly impacts the bottom line for local phở restaurants and service-based businesses. For job seekers or newcomers—including those navigating the transition on F2B or other immigrant visas—finding employment in hubs like Little Saigon will be considerably more difficult than in recent years. Overall, while this period offers stability for those already established, it remains a challenging time for anyone looking to change careers or pursue business expansion.