
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
German men need approval for stays abroad under military service law - 2
Recalled "super greens" supplement linked to dozens of salmonella cases, CDC says - 3
Meet the Stars of the Feline World: Well known Pet Feline Varieties - 4
Pentagon advances Golden Dome missile defense with new Space Force contracts - 5
Innovative Versatility: Examples of overcoming adversity from Entrepreneurs
Vote in favor of the bloom plan that adds a bit of excellence to your life!
Giant ‘toothed’ birds flew over Antarctica 40 million to 50 million years ago
Vote in favor of Your Fantasy Vehicle: Which Notable Model Catches Your Heart?
The secret appeal of Harlan Coben’s messy, addictive TV thrillers
Photos: Hundreds Gather at Bondi Beach After Deadly Attack
Vote In favor of Your Favored Kind Of Attire
Will Comet C/2025 R3 (PanSTARRS) be the 'great comet' of 2026?
Soldiers seize power in Guinea-Bissau and detain the president
Israel launches new wave of attacks against Hezbollah in Beirut













