U.S. job openings fell to 6.88 million in February, and the hiring rate hit the lowest level since April 2020

Gate News message: On Tuesday, March 31, the U.S. Bureau of Labor Statistics reported that job openings fell from 7.24 million (revised up from January) to 6.88 million in February. Hiring clearly slowed, indicating that labor demand was already cooling before additional uncertainty was triggered by the Iran war. After job openings had rebounded at the start of the year, the synchronized slowing in both hiring and openings suggests that, following a year of near-zero growth, companies have become more cautious about hiring. The decline in job openings was driven mainly by pullbacks in accommodation and food services, health care and social assistance, and manufacturing. The hiring rate fell to its lowest level since April 2020, while the layoff rate rose slightly. Even though large companies, including Meta and Oracle, are moving ahead with large-scale layoffs to redeploy resources toward AI investment, the layoff level across the broader economy remains relatively moderate. Looking ahead, a surge in oil prices caused by the war could raise companies’ operating costs and pose further resistance to additional hiring.