Job openings in the United States unexpectedly rose in December, according to the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS report).
Despite mounting fears of a recession and higher interest rates, there were 1.9 job openings for every unemployed person in December, indicating a strong demand for labor.
This trend is unlikely to change the expectations that the Federal Reserve will slow down the pace of its rate hikes.
The labor market's persistent tightness could help the Fed, as this could be the first recession in history without material job losses, according to Christopher Rupkey, chief economist at FWDBONDS in New York.
The New York Times further reported that job openings rose slightly to 11 million, bringing the number of job openings per available unemployed worker back up to 1.9.
This is not what the Federal Reserve was hoping for as it seeks to quell inflation, although wage growth has been slowing at the same time.
Meanwhile, people voluntarily left their jobs at about the same rate as they did in November.
Reuters noted that the persistent labor tightness did not change expectations that the U.S. central bank would raise its policy rate by 25 basis points, further slowing the pace of its rate hikes.
Despite the good news, CNBC reported that the labor market may not be recovering as quickly as hoped, as the rate of job growth remained below pre-pandemic levels, and the country's labor shortage remains a major concern for many employers.