The U.S. labor market is showing signs of losing steam, as evidenced by a recent decline in job openings and the lowest level of resignations since February 2018.
According to the latest Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics, the number of job openings fell 3.1% in February to 7.2 million, down from 7.4 million the previous month. This is the first time in three months that the number of job openings have declined.
Meanwhile, the number of quits – an indicator of worker confidence in the job market – fell 0.4% in February to 3.6 million, the lowest level since February 2018. This is a sign that workers may be becoming less willing to take risks or move to a new job.
The declining figures come as the U.S. economy continues to slow from last year’s torrid pace. Growth in gross domestic product has slowed from 3.5% in the third quarter to 2.6% in the fourth quarter of last year.
Although the job market has been resilient so far this year, the declining figures could be a sign that the labor market is starting to feel the effects of the slowing economy. There has yet to be a broad-based decline in job openings or resignations, but the data suggests the labor market may be starting to cool off.
