US job openings rise above expectations in January – JOLTS

US JOLTS report, released on Tuesday, showed that job openings increased in January, although the outlook could be darkened by expectations that demand for labor is likely to soften in coming months, due to growing uncertainty over import tariffs and aggressive government spending cuts that could cause a sharp slowdown in economic activity.

Job openings rose to 7.740 million in January, compared to downwardly revised December’s figure (7.588 million from 7.600 million) and beat forecasts for 7.650 million rise.

Earlier reports from the sector showed that job growth was solid in February, despite unemployment rising to the highest in over three years as Department of Government Efficiency has fired thousands of employees in attempts to shrink the government and slash spending.

Separate reports showed that layoffs dropped 34,000 to 1.635 million in January, while hires rose 19,000 to 5.393 million.

Economists remain cautious after President Trump sent shockwaves through the world on imposing tariffs on several key trading partners, then increasing the sizes of tariffs and putting some on hold, as new policies hurt businesses and consumer confidence.

Rising trade tensions also fueled the risk of recession that shook stock markets, although President Trump so far avoids any comment on whether the economy could experience a downturn.

The new environment is also expected to hit the policymakers, as FOMC meets next week and is expected to leave its benchmark overnight interest rate unchanged in the 4.25%-4.50% range for the second time, after policy rate has been reduced by 100 basis points since September when the Fed started its easing policy cycle.