February Job Market Cooled

Hiring weakened, with notable declines in healthcare (partly strike-related), information, and government   According to the BLS, the labor market lost jobs and ADP reported a net gain.  Is this a one-month blip or a sign of a trend. The labor market seems to be in a “low hire, low fire” mode where companies aren’t aggressively hiring, but they’re also not broadly laying people off.

• Payrolls: −92,000 (a surprise contraction)

• Unemployment rate: 4.4% (slightly up from 4.3%)

• New Hires and separations were essentially flat

• American Staffing Association reported that its Staffing Index rose in February

For a deeper dive….

•      A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons fell to 7.9%.

•      Prime age labor force participation rate (ages 25-54) fell .2% 83.9%.

•      The overall labor force participation is 62.0%.  This is still 1.2% below the level of February 2020. 

•       In February, average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents, or 0.4 percent, to $37.32. Over  the past 12 months, average hourly earnings have increased by 3.8 percent. In February, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3 percent, to $32.03.

•       In February, the average workweek for all employees on private nonfarm payrolls was unchanged at 34.3 hours. In manufacturing, the average workweek edged down by 0.1 hour to 40.1 hours, and overtime was unchanged at 3.0 hours. The average workweek for production and nonsupervisory employees on private non-farm payrolls was unchanged at 33.8 hours.

•      APD reported that 63,000 jobs were added in February.

JOB OPENINGS AND LABOR TURNOVER – JANUARY 2026

The number of job openings was little changed at 6.9 million in January, the U.S. Bureau of Labor Statistics reported today. Hires were unchanged at 5.3 million, while total separations changed little at 5.1 million. Within separations, quits (3.1 million) and layoffs and discharges (1.6 million) changed little.

This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, by region, and by establishment size class. This release also includes 2025 annual estimates for job openings, hires, and separations. Job openings include all positions that are open on the last business day of the month. Hires and separations include all changes to the payroll during the entire month.

Job Openings

The number and rate of job openings were little changed at 6.9 million and 4.2 percent, respectively, in January. The number of job openings increased in finance and insurance (+184,000).

Hires

In January, the number and rate of hires were unchanged at 5.3 million and 3.3 percent, respectively.

Hires decreased in transportation, warehousing, and utilities (-67,000) and in real estate and rental and leasing (-20,000).

Separations

Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.

The number and rate of total separations in January were little changed at 5.1 million and 3.2 percent, respectively. The number of total separations decreased in transportation, warehousing, and utilities (-79,000) and in federal government (-10,000).

In January, the number of quits was little changed at 3.1 million. The quits rate, at 2.0 percent, remained unchanged. The number of quits increased in private educational services (+16,000).

In January, the number and rate of layoffs and discharges changed little at 1.6 million and 1.0 percent, respectively. Layoffs and discharges decreased in transportation, warehousing, and utilities (-55,000).

The number of other separations changed little at 337,000 in January.

Establishment Size Class

In January, establishments with 1 to 9 employees and establishments with 5,000 or more employees showed little or no change in job openings, hires, and separations rates.

December 2025 Revisions

The number of job openings for December was revised up by 8,000 to 6.6 million, the number of hires was revised down by 21,000 to 5.3 million, and the number of total separations was revised down by 48,000 to 5.2 million. Within separations, the number of quits was revised up by 21,000 to 3.2 million, and the number of layoffs and discharges was revised down by 96,000 to 1.7 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors. The annual revision process also contributed to the December revisions)

Annual Levels and Rates

Consistent with BLS practice, annual estimates are published for not seasonally adjusted data each year with the January news release. For details about how these estimates are calculated, see the technical note.

In 2025, the annual average job openings level was 7.1 million, a decrease of 571,000 from 2024. The annual average job openings rate was 4.3 percent in 2025, compared to 4.6 percent in 2024.

In 2025, the annual hires level was 63.0 million, a decrease of 1.5 million from 2024. Annual total separations decreased by 251,000 in 2025 to 62.8 million. Annual quits decreased by 1.3 million in 2025 to 38.0 million and accounted for 60.6 percent of total separations. Annual layoffs and discharges increased by 1.2 million in 2025 to 21.2 million and accounted for 33.8 percent of total separations.

Annual other separations decreased by 224,000 in 2025 to 3.5 million and accounted for 5.6 percent of total separations.

The annual average hires rate for 2025 was 3.3 percent, down from 3.4 percent in 2024. The annual average total separations rate for 2025 was 3.3 percent and was unchanged from 2024. The 2025 annual average rates for the components of total separations were 2.0 percent for quits, 1.1 percent for layoffs and discharges, and 0.2 percent for other separations.

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The Job Openings and Labor Turnover Survey estimates for February 2026 are scheduled to be released on Tuesday, March 31, 2026, at 10:00 a.m. (ET).