The U.S. job market is in a period of stagnation, economists said, with low layoffs and a slower pace of hiring. Though unemployment remains historically low and layoffs have been minimal, the slow pace of hiring has been a challenge for job seekers, making it harder to find new jobs. This low-hire, low-fire environment, as described by Bank of America economists, reflects a lack of movement in the labor market.

Despite the overall strength of the job market-the unemployment rate was 4.2% in November and the layoff rate was at its lowest since the early 2000s-hiring activity has slowed. Hiring was at its worst level since 2013 in October, and at the same time, unemployment average lasted for 23.7 weeks in November, a rise from previous years when it was about 19.5.

Many workers who entered the Great Resignation in 2021 and 2022 to find better opportunities in the competitive job market are now experiencing a Great Stay since employers are more interested in keeping their workers than in hiring new ones.

This partly results from the experience of the businesses with labor shortages and turnover costs, which make them want to keep workers. The Federal Reserve has kept interest rates sharply up since 2022 in controlling inflation. It has also cooled the job market. While recent rate cuts may help get people hired, economists say a competitive job market is in for now.

The current labor market also shows signs of divergence. Overall, while job growth is very strong, much of this growth remains concentrated in the health services, government sectors, and the leisure and hospitality sectors. Conversely, these slow-moving sectors are largely seen in software development, marketing, and media sectors. There is, therefore a potential need for adjusting in search by prolonging job hunting, reskilling, and customizing the resumes in matching the exactly needed ones from employers. For those who are satisfied about their job, job security is higher than ever.