Job openings dropped more than expected in March, signaling continued cooling in the labor market, according to the latest Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics.
- Openings fell to 7.2 million in March, down from 7.48 million in February and marking the lowest level since September 2024. Economists had expected a modest dip to 7.40 million.
- The largest contributor to the decline was a 36,000 drop in federal government job openings.
Despite fewer openings, the labor market showed signs of underlying resilience. Total separations — which include quits, layoffs, and retirements — fell to 5.137 million, the lowest since December and down from 5.32 million in February.
- Interestingly, quits rose to 3.33 million in March, up from 3.25 million in February and reaching their highest level since July 2024.
- Rising quits often signal worker confidence in finding new jobs and are seen as a gauge of labor market strength.
Impact on Rates: A cooling labor market along with a slow down in the economy can mean lower rates as long as inflation is also falling.
