February Job Openings Fall, Hires Lowest Since April 2020

February Job Openings Fall, Hires Lowest Since April 2020

The February Job Openings and Labor Turnover Survey (JOLTS) reported a decrease in job openings from revised January numbers. A mix of severe weather and healthcare strikes led to the lower-than-expected employment growth in February, and the lowest level and rate of hires since April 2020. Aside from the 2020 dip, the hires level has not been this low since 2014, when the labor market was still rebuilding after the Great Recession. While unemployment in today’s market remains low, the stall in hiring, coupled with a delay in retirement activity, is leading to a locked-out market for many new entrants.  

February 2026 Snapshot

• February saw 6.9 million job openings, down 358,000 from a month ago. 

• The hires rate dropped to 3.1% - the lowest since April 2020, when it was also 3.1%. 

  • The hires level also hit a low since April 2020, with only 4.8 million hires - down nearly half a million from January, explaining the drop in employment growth seen during the month. 

• The quits rate stayed low at 1.9%.

• Layoffs remained at 1.1% as companies remain locked in on stability and the low-hire, low-fire market persists. 

• Other separations - often a proxy for retirements - fell back to near record lows as the increasing cost of living drives many to delay retirements. 

Industry Highlights

• Hiring activity fell the most in: 

  • Accommodation and Food Services - rate down by 1.2 percentage points

  • Construction - rate down by 1.1 percentage points

These industries are among the most severely impacted by weather events, and February saw significant bad weather across the country, which was a major contributing factor in a reduction in hiring. The surge in gas prices will also likely impact these industries in the coming months, along with Transportation and Warehousing, Manufacturing, and Retail. Transportation costs and consumer spending will be highly impacted by high gas prices, further pulling back hiring activity in the March data.