The March 2023 Jobs Report & February 2023 JOLTS: The Current U.S. Employment Situation

The steady job growth seen over the last few months is slowing, as nonfarm payrolls increased by 236,000 jobs in March according to the U.S. Department of Labor’s March 2023 jobs report. Those numbers are the lowest the U.S. has seen since December 2020, but in line with expectations. Some economists say that despite the slowdown, the job market is still healthy and growing, while others are wary that the recession the Fed has been trying to avoid may be coming after all. The unemployment rate fell slightly to 3.5% in March, and the number of unemployed persons also saw a minor drop to 5.8 million people.

The February 2023 Job Openings and Labor Turnover Summary (JOLTS) released Wednesday showed that the number of job openings decreased again to 9.9 million at the end of the month. The total number of separations dipped from 5.9 million in January to 5.8 million. However, voluntary quits edged up to 4 million from 3.9 million in January. And although layoffs have been making headlines in recent weeks, the total number of layoffs decreased by about 215,000 in February to 1.5 million.

Other noteworthy statistics from the reports:

• We saw another small increase in the labor force participation rate, from 62.5% to 62.6%.
• Average hourly wages grew by $.09, lowering the average annual increase to a two-year low of 4.2%. This could be a good sign for the Fed as it tries to slow inflation.
• The number of jobs added in February was revised up slightly by 15,000 to 326,000.

Despite the slowdown, there are still some industries hiring now. The leisure and hospitality and professional and business services industries both saw steady gains, and transportation and warehousing bounced back from a loss in February. However, the construction, manufacturing, mining, financial activities, information, and other services industries saw no growth, while retail trade lost jobs.

Don’t let the slowdown discourage you. There are still opportunities available for both job seekers and employers, and iHire is here to help you reach your goals.