
US businesses are adding workers at the weakest pace in 15 years, excluding the onset of the pandemic, new data showed Tuesday, a sign that there was an even deeper chill cutting through the labor market before the Middle East conflict threatened to shake the US economy.
Hires as percentage of total employment dropped to 3.1% at the end of February, the lowest rate since April 2020 and, before that, 2011, according to the latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics.
The hires rate dropped off from 3.4% in January, marking the steepest one-month decline outside of the pandemic since 2016, noted Laura Ullrich, director of economic research in North America at the Indeed Hiring Lab.
“Which is concerning given the ongoing impacts of the conflict in Iran,” she wrote in a note Tuesday.
The steepest pullbacks in hiring were seen in the construction and professional and business services sectors.
The lowest hires rate on record was 2.9% in 2009, during the Great Recession.
Tuesday’s report also showed a dip in the number of job openings – a closely watched measurement of labor demand. They fell to an estimated 6.88 million from 7.24 million in January.
Layoffs increased to 1.72 million from 1.66 million, but the rate of layoffs of overall employment remains in line with averages seen in recent years. Voluntary quits, which serve as a gauge of worker confidence, fell in February to 2.97 million, marking the lowest level since 2020.
Listless hiring and labor hoarding mean the all-important “churn” needed for a healthy labor market and healthy economy has ground to a near-halt.
The February jobs report, which showed the US economy shed an estimated 92,000 jobs that month, further raised concerns that the labor market was not just stuck, but breaking.
The weekslong deadly and escalating conflict in the Middle East has amplified those fears.
In addition to rising uncertainty, the energy shock and other material shortages are forcing companies to grapple with immediate tangible effects, such as the higher cost of living for workers and customers, noted Elizabeth Renter, NerdWallet’s senior economist.
“If their input costs rise, they may be forced to reckon with tough decisions such as raising prices or reducing hours and workforce,” she wrote Tuesday.
For more CNN news and newsletters create an account at CNN.com
LATEST POSTS
- 1
Help Your Efficiency: 10 Authoritative Apparatuses to Attempt - 2
Manual for extravagance SUVs for seniors - 3
'Seditious behavior': Trump accuses Democrats who made video reminding the military not to follow illegal orders of a crime — but is it? - 4
'Euphoria' releases Season 3 photos with Zendaya, Sydney Sweeney, Jacob Elordi and others: See them - 5
Vote in favor of Your Fantasy Vehicle: Which Notable Model Catches Your Heart?
Figure out How to Pick the Right Toothbrush for You
The Starbucks for Life game is back, along with your chance to win a 'Bearista' cold cup. Here's how to get your paws on one.
The Best 15 Applications for Efficiency and Association
Trial of pro-Palestine activist begins
The most effective method to Offset Album Rates with Liquidity Needs
A Manual for SUVs with Less Noteworthy Gas Mileage
Flourishing as a Charitable Pioneer: Individual Encounters in Generosity
What we know about Renee Nicole Good, the woman who was killed by an ICE officer in Minneapolis
Involved Vehicles for Seniors: Track down the Best Picks for Solace and Unwavering quality












