March Job Openings Flat, but Hires Increase
March Job Openings Flat, but Hires Increase
The March Job Openings and Labor Turnover Survey (JOLTS) reported that while the level of job openings remained relatively unchanged, employer activity increased, as hires bumped up by 655,000 in March, taking the hires rate from the February slump of 3.1% back to 3.4%, matching the highest level since early 2024.
Hires increased the most in Transportation, Finance and Insurance, Professional and Business Services, and Accommodations and Food Services.
High energy and gas prices have yet to impact hiring in Transportation as of March, but the April data might tell a different story.
Hires continued to decrease across the Federal Government.
With the continued increase in hiring, workers are starting to make their move. The quits rate ticked up to 2.0% in March, up from 1.9%, indicating more workers are choosing to voluntarily leave their jobs. Uncertainty in the labor market may be slowly fading as activity begins to resume.
Quits are up the most in services: Real Estate, Other Services, and Accommodation and Food Services.
Other separations, a proxy for retirements, increased in March by 76,000. A modest increase, but a signal that the wave of Baby Boomer retirements is starting to roll through. Workers aged 60+ make up roughly 14% of the workforce, and as they make their exit, turnover will increase and demand for labor will rise. At the same time, ZipRecruiter’s recent research on retirement realities highlights that many workers aged 60+ remain uncertain about their long-term financial and retirement outlooks.
Job openings were down 56,000 from a month ago. But the downward pressure on openings could be a signal that employers are starting to speed up the hiring process from the slowdown of the past year, as hires increased despite openings pulling back.
Job openings increased the most in skilled trades (Mining, Construction, and Manufacturing), industries which are most impacted by falling labor supply from a change in net immigration, and Finance and Insurance.
Job openings decreased the most in Professional and Business Services.
Job openings also continued to fall in the Federal Government.
Layoffs increased to 1.2% in March, a higher level than the typical 0.9% to 1.1% range over the last 5 years, though it has been seen a few times. This increase suggests that broader market turnover is rising. Employers appear to be more willing to resume activity compared to the stall of last year, and at the same time, workers are becoming more willing to change jobs.
Layoffs were up the most in Professional and Business Services, Information, and Other Services.
AI's impact is already transforming the tech industry (captured in Professional and Business Services and Information), causing a surge in job turnover—hiring spikes, increasing layoffs, and a decrease in job openings—as roles shift and new skills become essential.