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U.S. Hiring Hits Pandemic-Era Low in February as March ADP Shows Narrow Rebound

Rising energy costs with policy uncertainty now threaten to lock in a low‑hire, low‑fire job market.

Overview

  • Government data released Tuesday showed job openings fell to 6.882 million in February and hires dropped to about 4.8 million, the weakest pace since April 2020.
  • The hires rate slipped to 3.1% as the quits rate held at 1.9% and layoffs ticked up to 1.1%, signaling very low churn with employers reluctant to add staff or cut deeply.
  • ADP’s private report Wednesday counted 62,000 March jobs, with small businesses and education and health services leading gains, while construction added 30,000 and trade and manufacturing lost workers.
  • Economists say the late‑February escalation in the Iran conflict and higher oil prices could further chill hiring, and attention now turns to Friday’s BLS report that forecasters expect will show a modest payroll rebound of roughly 60,000.
  • Federal Reserve Chair Jerome Powell warned of a "zero‑employment growth equilibrium," as uncertainty tied to trade and immigration policy and growing AI adoption restrains hiring even with unemployment near 4.4%.