US hiring falls to lowest level since 2020 in February

Job openings in the United States fell more than expected in February, while hiring activity dropped to its lowest level since the start of the COVID-19 pandemic. According to the Labor Department's Bureau of Labor Statistics, the number of available positions decreased by 358,000 to 6.882 million. This figure fell short of the 6.918 million unfilled roles projected by economists polled by Reuters. The job openings rate subsequently fell to 4.2% from 4.4% in the previous month.

Hiring activity saw a significant decline of 498,000 positions, falling to 4.849 million—the lowest level recorded since March 2020 at the start of the pandemic. This drop brought the hires rate down to 3.1% from 3.4% in January. Meanwhile, layoffs and discharges rose slightly by 61,000 to 1.721 million, with the rate increasing to 1.1% from 1.0% in the previous month.

Federal Reserve Chair Jerome Powell recently commented on the stagnant nature of the current labor market.

A reluctance by employers to engage in large-scale hiring or layoffs has created what Federal Reserve Chair Jerome Powell this month called a zero-employment growth equilibrium that has a feel of downside risk.

Economists blame the labor market stasis on lingering uncertainty caused by President Donald Trump's trade and immigration policies, which have reportedly undercut both the demand for and the supply of workers. Data shows that private nonfarm payroll growth averaged just 18,000 jobs per month during the three-month period ending in February.