LOS ANGELES – The post-pandemic Great Resignation appears to be over. 

New data from the Labor Department, analyzed by The Wall Street Journal, shows fewer Americans are quitting their jobs as opportunities for job-switching shrink. 

While the labor market remains stable, businesses are becoming more cautious, and hiring has slowed.

Why are fewer Americans quitting?

By the numbers:

In 2024, 39.6 million workers quit, down 11% from 2023 and 22% from 2022, when job switching peaked. The share of employees quitting each month has also dropped below pre-pandemic levels, and some economists expect it to decline further.

A major factor is the decline in job openings. In 2022, there were two job openings per unemployed worker—now that ratio has dropped to 1:1, making it tougher to find new opportunities. Hiring has also slowed, with 66 million new hires in 2024, down from 71 million in 2023.

What’s behind the slowdown?

The other side:

Experts point to a combination of factors affecting the labor market:

• Fewer high-paying office jobs – Sectors like tech and law, which aggressively hired post-pandemic, have cut back on hiring.
• More focus on automation – RTX (formerly Raytheon) and other companies are investing in automation instead of hiring.
• Cautious business outlook – Employers are controlling salary costs rather than recruiting heavily, with Meta and other major firms making job cuts.

Michael Distefano, CEO of Korn Ferry’s professional-search business, told The Wall Street Journal that white-collar jobs have been in a hiring slump. “The past 18 to 24 months have been just more of a steady malaise,” he said.

What’s next for the job market?

What’s next:

Economists will be watching Friday’s January jobs report, which is expected to show 170,000 new jobs added, down from 256,000 in December, The Wall Street Journal reported. 

Guy Berger, an economist at the Burning Glass Institute, told The Wall Street Journal that the labor market has cooled without major layoffs—but that might not last forever. “This labor market has shown that it can keep cooling for a long time without things breaking,” he said. “Forever? Probably not.”