US Job Market Flat but State-Level Hiring Tells Different Story

US Job Market Flat but State-Level Hiring Tells Different Story

The US labor market showed little overall movement in January, according to the latest Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics.

While national figures for job openings, hires, and separations remained largely unchanged, state-level data revealed significant regional shifts that are important for both job seekers and employers to understand.

Job Openings Rise in Select States

Job openings rates increased in only three states—Arizona, Vermont, and Connecticut—while falling in Delaware and Oklahoma.

The largest percentage point increases occurred in Arizona and Vermont, both up by 1.4 points, with Connecticut rising by 1.0 point.

In terms of volume, Arizona led with an additional 53,000 job openings, followed by Pennsylvania (+45,000), and both Massachusetts and Tennessee (+26,000 each).

Declines were limited to Oklahoma (-15,000) and Delaware (-6,000). The national job openings rate changed little over the month.

This suggests that while national employers may be holding steady on recruitment, states like Arizona and Pennsylvania are still ramping up, potentially in growing industries such as technology, logistics, or healthcare.

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Hiring Slows in the West, Surges in Texas

Hires rates decreased in 11 states and increased in four, with the most significant drops seen in Nevada (-1.9 percentage points), Wyoming (-1.7 points), and Utah (-1.5 points).

On the other hand, Vermont (+1.3 points), Texas (+0.9), Connecticut, and Tennessee (+0.8 each) all saw increased hiring activity.

Looking at the number of hires, Texas experienced a sharp rise of 128,000 new hires, the highest of any state.

New York added 39,000, and Tennessee 28,000.

The largest decreases came from Nevada (-30,000), Washington (-28,000), and New Jersey (-27,000).

The data points to a possible cooling in states heavily reliant on hospitality and retail, while Texas’s broad-based growth may reflect demand in industries such as energy, warehousing, and construction.

Separation Rates Signal Volatility in Key Regions

Seven states saw an increase in total separations rates in January, with Idaho, Vermont, and Colorado leading.

Idaho rose by 1.9 percentage points, Vermont by 1.6, and Colorado by 1.5. Rhode Island was the only state to see a notable drop (-2.3 points).

The number of total separations grew in eight states, including Colorado (+47,000), Illinois (+39,000), and Tennessee (+35,000).

Only Rhode Island recorded a measurable decline in separations volume, down 12,000.

This rise in separations, especially in Colorado and Tennessee, could indicate workforce reshuffling or sector-specific instability.

Quits Climb in Several States

The quits rate—a key indicator of worker confidence—rose in seven states.

Colorado saw the biggest jump at +1.3 percentage points, followed by Tennessee (+1.2) and Vermont (+1.0). Nationally, the quits rate held steady.

The number of quits increased in 11 states, with Florida (+50,000), Illinois (+44,000), and Tennessee (+39,000) seeing the largest gains. Texas recorded the only significant drop, down 43,000.

Higher quits typically suggest that workers feel confident about finding new opportunities.

Tennessee’s simultaneous rise in hires and quits may point to a competitive local job market where employees have multiple options.

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Layoffs and Discharges Mostly Flat

There was little movement in layoffs and discharges across the country. Only two states—Florida and Rhode Island—saw decreases in layoff rates, while Minnesota recorded a small increase. The number of layoffs dropped by 59,000 in Florida and 13,000 in Rhode Island, while Minnesota added 15,000.

Overall, employers appear to be avoiding large-scale workforce reductions, suggesting confidence in current staffing levels despite mixed hiring trends.

What This Means for Employers and Job Seekers

For job seekers, opportunity depends heavily on location. Arizona, Texas, and Tennessee are showing growth, with notable increases in job openings and hires.

In contrast, job seekers in Nevada and Oklahoma may face more competition due to declining demand.

Employers in high-turnover states may need to focus on improving retention through benefits, culture, and career progression. Rising quits and separations highlight potential dissatisfaction or poaching from competitors in active markets.

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Outlook: Stability on the Surface, Movement Underneath

While national hiring and separation rates remain largely unchanged, the state-level data paints a more active picture. Regional job markets are shifting in response to local economic factors, cost of living, and industry-specific demand.

The next JOLTS report, covering February 2025, is due on April 16. If current trends continue, it’s likely we’ll see a continued patchwork pattern—with some states accelerating hiring while others tighten the reins.

For real-time updates on employment trends and job opportunities by region, visit WhatJobs.com.