WASHINGTON -- U.S. employers advertised the most jobs in 14 years in January, and more workers quit -- both signs of a steadily strengthening job market.
Job openings rose 2.5 percent to nearly 5 million, the most since January 2001, the Labor Department said Tuesday. The number of people who quit their jobs increased 3 percent to 2.8 million, the most in more than six years.
More resignations are generally a sign of confidence in the economy, because people typically leave jobs when they either have others lined up, often at higher pay, or are optimistic that they can find new ones.
Some 2.8 million people left their jobs voluntarily in January, compared with 2.72 million a month earlier, the report showed. The rate of resignations rose to 2 percent in January, matching the highest level since April 2008, from 1.9 percent.
"An important bellwether of a vibrant economy is when people are willing to voluntarily leave their job because they think they can get a better job," Labor Secretary Thomas Perez said. "People are no longer fearful to leave their jobs. They think they can get a better job. That's really one of the best ways to increase your wages and your standard of living."
Increased openings are usually followed by stronger job gains. Steady economic growth, powered largely by consumer spending, has increased businesses' confidence in the economy and made them more willing to hire.
"The labor market is getting tighter and tighter," said Stan Shipley, an economist at Evercore ISI in New York, who projected 5.03 million openings. "You're seeing it in the unemployment rate going down and the job openings going up. It's harder and harder to find people qualified to fill positions."
Stocks fell Tuesday, wiping out gains for the year, as the dollar strengthened to near a 12-year high versus the euro on speculation the Federal Reserve is moving closer to raising interest rates. The Dow Jones industrial index fell 332.78 points, or 1.9 percent, to 17,662.94.
"The dollar's going up so much so fast you wonder what it does to U.S. economic growth down the road, to profitability," said Jim Paulsen, a Minneapolis-based chief investment strategist at Wells Capital Management, which oversees $338 billion.
The January job openings report follows another strong monthly jobs report released Friday. Employers added 295,000 jobs in February, extending a robust streak of hiring that began last year. The number of Americans earning paychecks has jumped nearly 3.3 million in the past year, the best 12-month gain since March 2000.
That gain has helped to lower the U.S. unemployment rate to 5.5 percent from 6.7 percent a year ago.
The figures that were reported Friday are a net figure: Jobs gained minus jobs lost. The data being reported Tuesday are more detailed. They calculate total hires, as well as resignations and layoffs.
Tuesday's report also includes revisions to the previous five years of data. Job openings in December were revised down sharply from more than 5 million to 4.88 million.
Total hiring actually slowed in January, to fewer than 5 million after reaching 5.2 million, a seven-year high, in December. The number of layoffs also fell that month.
"The slower recovery in hiring suggests employers are taking their time filling openings or are having a hard time finding qualified candidates," Sarah House, an economist at Wells Fargo, said in a note to clients.
Those difficulties could prompt employers to offer higher pay to fill some positions, economists say. There were, on average, 1.8 unemployed workers for every open job in January. That is typical of a healthy economy and is down from a record high of 6.7 in July 2009, just after the recession ended.
But so far, the improving job market has yet to lift wages much. Average hourly pay rose just 2 percent in the 12 months that ended in February, down from a 2.2 percent year-over-year pay increase in January.
A brighter outlook for demand is keeping companies such as Cincinnati-based Kroger Co., the biggest U.S. grocery-store chain, on pace to add to its workers.
"We continue to create jobs," Chief Executive Officer Rodney McMullen said during an earnings call Thursday. "Kroger customers are increasingly positive about the economy since late last year through the new year. They are feeling more comfortable with their discretionary spending, in part due to the low retail price of fuel."
Information for this article was contributed by Christopher S. Rugaber of The Associated Press and by Michelle Jamrisko, Joseph Ciolli and Michelle F. Davis of Bloomberg News.
A Section on 03/11/2015