The Job Market Got Better In January, Before Tariff Turmoil

Key measures of the job market’s health improved in January, in a final snapshot taken before President Donald Trump’s trade wars shook up the economy.

The number of job openings rose in January to 7.7 million from a downwardly revised 7.5 million in December, the Bureau of Labor Statistics said Tuesday.

At the same time, layoffs fell to 1.6 million from 1.7 million, close to historic lows. Another 5.4 million people were hired, a slight increase from December but the same after the numbers were rounded. In a sign that workers felt better about their prospects of switching jobs for higher pay, 3.3 million people quit their jobs, the most since July.

The report added detail to data released earlier this month showing the U.S. labor market staying resilient, creating jobs in January, albeit at a relatively sluggish pace. Since then, Trump’s on-again, off-again tariff threats have stoked uncertainty, undermined confidence among business leaders and consumers, sent stocks tumbling, and raised fears of a possible economic downturn and job losses. Other Trump policies, including mass firings of federal workers and a crackdown on immigration, could also affect the job market.

“This report tells us that the labor market was healthy from the perspective of continued expansion prior to the policy regime shift that began to unfold with the new administration,” John Ryding and Conrad DeQuadros, economists at Brean Captial, wrote in a commentary. “Unfortunately, the report tells us nothing about how companies will respond to the threat of tariffs and rising uncertainty, and this could take several months to unfold.”