
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
Crew-11 astronauts undock in 1st-ever medical evacuation from the International Space Station (video) - 2
Step by step instructions to Safeguard Your Teeth During Sports Exercises - 3
Philippines evacuates 3,000 villagers after volcano activity raises alert level - 4
Safeguarding Your Senior Protection Against Extortion and Tricks. - 5
Disney's latest short film 'Versa' tackles a difficult subject: Pregnancy loss. It's resonating with viewers.
James Webb Space Telescope discovers a lemon-shaped exoplanet unlike anything seen before: 'What the heck is this?'
Katz alleges Army Radio workers misled High Court in bid to halt closure
What happened to Eleven after the ambiguous 'Stranger Things' series finale? Millie Bobby Brown knows — but 'swore herself to secrecy'
Fossil analysis changes what paleontologists know about how long T. rex took to grow full size
What to know about MIT professor Nuno Loureiro and the investigation into his shooting
Triple polar vortex to plunge central and eastern U.S. into Arctic cold through mid-December
Instructions to Perceive and Grasp the Early Side effects of Cellular breakdown in the lungs
CVS forecasts 2026 profit above estimates on strong performance
Arrow Exploration brings new Colombian oil well on stream ahead of schedule and under budget












