US job market cools as openings hit six-year low

The US labour market is showing clearer signs of slowing, with job openings dropping to their lowest level in six years as hiring demand weakens.

The latest Job Openings and Labour Turnover Survey (JOLTS), released Tuesday, shows vacancies fell by 358,000 to 6.882 million in February — a sharper decline than expected and down from 7.240 million in January.

The slowdown is not limited to openings. Hiring also pulled back significantly, with 498,000 fewer hires, bringing the total to 4.8 million — the lowest level since March 2020, at the height of the pandemic.

There are also fewer workers willing to move. About three million people quit their jobs in February, with the quit rate edging down to 1.9 percent. That shift points to a more cautious workforce, less confident about finding better opportunities elsewhere.

The data fits into a broader pattern of cooling economic sentiment. A University of Michigan report for March shows consumer confidence falling both month-on-month and year-on-year, reaching its lowest level since December.

Labour market behaviour is reinforcing that mood. Workers staying put rather than switching jobs often signals uncertainty rather than stability.

She added that governments in the US should be planning their policies to address any upcoming fluctuations in the market.

Several overlapping pressures are shaping the outlook. Trade policy remains unsettled after legal challenges to tariffs, while the ongoing war with Iran — which began after US strikes on February 28 — has disrupted global energy flows and pushed fuel prices higher.

In the US, petrol prices have risen sharply, adding to household costs and feeding into broader economic anxiety.

Inside government, concerns about the trajectory are also surfacing. Federal Reserve Chair Jerome Powell recently warned that a “zero-employment growth equilibrium” carries “a feel of downside risk”.

For now, the Federal Reserve has kept interest rates steady, resisting pressure to cut them. Its next decision is expected later in April.