U.S. private-sector employers showed strong demand for workers in late March, according to recent data from the Labor Department. Hiring increased, layoffs decreased, and worker confidence improved, indicating a resilient labor market as spring approached.
In March, businesses posted about 6.4 million job openings, a slight drop from 6.6 million in February. When including government positions, there were 7.19 million vacancies—down from 7.48 million the previous month. Despite this decline, job openings remain higher than pre-pandemic levels, suggesting that employers are still eager to hire, even amid economic uncertainties.
The report highlights that employers are expanding their payrolls and looking for new hires, despite challenges like global economic shifts and stock market volatility tied to trade concerns. The Trump administration’s efforts to change trade relationships and streamline the federal workforce have not significantly disrupted hiring in the private sector, which remains steady across most industries.
Looking ahead, the upcoming jobs report is expected to show continued job growth and a stable unemployment rate, reflecting a strong labor market. Meanwhile, the first-quarter gross domestic product report is anticipated to reveal a slowdown in economic growth, from 2.4 percent at the end of last year to just 0.2 percent.
Hiring in the private sector rose to 5.41 million, up from 4.37 million, while layoffs fell to 1.6 million—the lowest level since June 2024. This decline in layoffs was seen across various sectors, including retail, manufacturing, finance, and transportation, indicating that employers are confident about future business conditions.
In the manufacturing sector, which is often closely watched for signs of economic pressure, job openings slightly increased to 449,000. Hiring in this sector remained steady at 319,000, and layoffs also decreased, particularly in durable goods industries. This suggests that demand for factory workers is stable, despite concerns over tariffs and slowing growth.
Workers are feeling more optimistic as well, with the quits rate rising to 2.1 percent, a sign that many Americans feel confident in their ability to find new jobs. The total number of voluntary departures reached 3.3 million, with increases noted particularly in leisure, hospitality, and financial services.
On the government side, the administration’s efforts to streamline operations have led to a decrease in federal job openings, which fell by 36,000 from the previous month. Federal hiring is also significantly lower compared to last year. Job openings in state and local governments, as well as in health care and social assistance, have also declined, showing a broader trend of reducing public-sector growth.
Overall, while total job openings are down from record levels seen in 2022, the labor market remains strong. The number of vacancies relative to unemployed workers is still historically high at 1.0, indicating a robust job market. The upcoming April employment report will provide further insights into job growth and unemployment trends as the economy continues to evolve.