From CNBC: 2024-12-23 12:10:14

The U.S. job market has shifted from high turnover to low churn, leading to a “great stay” with minimal hiring, quits, and layoffs. Job openings hit record levels, unemployment dropped, and wages grew as businesses competed for talent. However, hiring has slowed, signaling a stabilizing labor market.

Employer “scarring” and reduced job openings are key factors in the great stay. The Federal Reserve’s interest rate hikes led to decreased hiring and business expansion. While interest rates have been cut, the labor market remains influenced by recent shocks. Workers have increased job security, but job seekers may face challenges finding new opportunities.

Read more: Why the ‘great resignation’ became the ‘great stay’: labor economists