WASHINGTON (AP) — U.S. job openings rose to nearly 7 million in January, better than expected at a time when the American labor market has looked sluggish.

The 6.95 million job postings in January were up from 6.55 million in December, the Labor Department said Friday. That was higher than economists had forecast.

Layoffs fell slightly and the number of Americans quitting their jobs — a sign of confidence in their prospects — slipped modestly.

In the hiring boom that followed COVID-19 lockdowns, job openings peaked at a record 12.3 million in March 2022.

The American job market is sputtering. Last month, employers cut 92,000 jobs. In 2025, they added fewer than 10,000 jobs a month, weakest hiring outside recession years since 2002. The lingering effects of high interest rates, uncertainty around President Donald Trump’s policies and possibly the increasing use of artificial intelligence appear to be weighing on the labor market.

The U.S. economy has been resilient in the face of President Donald Trump’s import taxes and deportations. But the Commerce Department reported Friday that economic growth slowed sharply in the last three months of 2025 — to 0.7%, half its initial estimate of fourth-quarter growth and down from a strong 4.4% advance in the third quarter.

The war in Iran has also created considerable uncertainty over the economic outlook.

“At least companies were posting more jobs in January. Job openings did rise, but companies weren’t actually hiring much. The United States is in the midst of a hiring recession,″ said Heather Long, chief economist at Navy Federal Credit Union. “The only good news is layoffs also remain low, but it’s hard for anyone looking for a job right now, and the war in Iran and AI adoption are only going to make this spring more challenging for job seekers.″