Fewest Americans Ever Are Laid Off in Frenzy to Retain Workers

(Bloomberg) -- The fewest number of U.S. workers were laid off in December, highlighting businesses' desperation to retain talent.

Just 1.2 million Americans were dismissed from their jobs, the least in data back to 2001, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, showed Tuesday. That translated into a layoffs and discharge rate of 0.8%, also a record low.

The data are consistent with a tight labor market in which employers are raising pay and offering attractive benefits in a battle to lure and retain talent. Labor shortages continue to plague businesses in a variety of industries, contributing to decades-high inflation.

The report also showed that job openings rose unexpectedly in the month while quits declined slightly, suggesting that labor demand held steady in the month despite a surge in Covid-19 infections and pandemic-related business disruptions.

Retail trade saw the largest decrease in layoffs and discharges, while they increased in sectors like education and health services and federal government positions. By region, layoffs and discharges decreased in the Northeast and rose slightly in the West.

©2022 Bloomberg L.P.