Hiring Engine Sputters: US Job Growth Slows to Pre-Pandemic Lows

CNN, Bloomberg, CNBC, the Wall Street Journal, and the Bureau of Labor Statistics contributed to this report.

The US job market is losing momentum – and fast.

Fresh data out Tuesday shows businesses are hiring at the slowest pace in roughly 15 years, if you strip out the pandemic shock. That slowdown was already taking hold before the Middle East conflict added another layer of uncertainty to the economic outlook.

By the end of February, hiring dropped to just 3.1% of total employment, down from 3.4% a month earlier. That’s the weakest level since 2020 – and before that, you’d have to go back to 2011 to find something similar. It’s also one of the sharpest month-to-month declines in years.

The pullback isn’t evenly spread. Construction and professional services are seeing some of the steepest cuts, hinting that businesses in key sectors are already bracing for tougher conditions ahead.

There’s more. Job openings slipped too, falling to 6.88 million from 7.24 million in January. Layoffs ticked up slightly, though not dramatically, while voluntary quits – a key signal of worker confidence – dropped to their lowest level since 2020.

Put it all together, and the labor market looks stuck. Companies aren’t hiring much, but they’re not letting go of workers en masse either. That kind of standstill kills the usual churn that keeps the job market healthy.

And the cracks may already be widening. February’s broader jobs report showed the economy actually lost around 92,000 positions. Not a great sign.

Now layer in the global backdrop. The ongoing conflict in the Middle East is pushing up energy costs and rattling supply chains. That feeds directly into business decisions – higher costs, tighter margins, and tougher calls on staffing.

Employers are starting to feel it. Rising input costs and a more expensive cost of living for workers could force companies into uncomfortable choices: raise prices, cut hours, or trim headcount.

None of those options point to a stronger labor market anytime soon.