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3w ago

U.S. Labor Market Softens Further as February Job Openings Decline

Economic uncertainty from tariffs and federal workforce reductions contributes to rising layoffs and declining job openings, signaling potential recession risks.

President Donald Trump’s fast-moving policy actions are expected to ripple through the private sector, potentially stifling growth.
A "we're hiring" poster is seen in a window as people visit a retail store during the holiday season in New York City, U.S., December 21, 2022. REUTERS/Eduardo Munoz/File Photo
Flags fly over the Federal Reserve Headquarters on a windy day in Washington, U.S., May 26, 2017. REUTERS/Kevin Lamarque/File Photo

Overview

  • Job openings fell to 7.568 million in February 2025, marking a decline of 194,000 from January, according to the Bureau of Labor Statistics.
  • Layoffs increased by 116,000 to 1.79 million in February, while hiring remained steady at 5.4 million.
  • President Trump's tariff policies and significant federal workforce reductions are fueling economic uncertainty and dampening business confidence.
  • The quits rate, a measure of worker confidence, held steady at 2.0%, near pre-pandemic levels, suggesting stability in job security.
  • Economists warn that rising inflationary pressures and policy-driven uncertainty could heighten recession risks in the coming months.