Hiring picked up sharply in March, according to the latest numbers from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). It signals that the labor market is stable for now, but economists warn that rising oil prices, higher inflation, and slowing global growth could quickly change that picture.
Hiring up, job openings steady
Employers hired 5.6 million new workers in March, up 655,000 from February. It marks the strongest month for job growth since February 2024. Job openings held steady at 6.9 million, nearly unchanged from the month before. Layoffs remained flat month-over-month at 1.9 million, although that number is 272,000 higher than they were a year ago.
The largest gains were in transportation, warehousing, and utilities, with more than 108,000 jobs added. Accommodation and food services jobs came in second, adding 124,000 jobs. At the same time, government hiring fell by 7,000.
About 3.2 million workers quit their jobs in March, nearly unchanged from last month. However, that number is down by 285,000 from this time last year. Economists view quitting as a positive sign, as it indicates confidence in the job market.
Labor market’s impact on SMBs
Job creation has fluctuated widely so far this year. Employers added 160,000 positions in January, cut 133,000 in February and added 178,000 in March.
The Federal Reserve Bank of St. Louis now estimates that the economy needs as few as 15,000 net new jobs per month to keep unemployment from rising down from 153,000 a year ago.
A tighter labor market can have significant impacts on how small business owners hire and how much they pay.
On one hand, fewer workers competing for jobs means less pressure to post as many openings to find candidates. On the other hand, job seekers know they have options, giving them more leverage to negotiate higher wages.
Slowdown ahead?
The Bureau of Labor Statistics releases the April jobs report on Friday. Analysts expect it will show about 57,000 new net jobs, keeping the unemployment rate at 4.3%.
But that forecast is significantly lower than the 178,000 jobs added in March. If the numbers hold, analysts say it could be the first clear signal of how the Iran war is affecting hiring in the U.S.
The next JOLTS report, covering April, is scheduled for June 2.
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