March Jobs Numbers Hotter Than Expected

Key Highlights:

• Healthcare, construction, and rebound-sensitive industries driving gains

• The JOLTS report shows that hiring, layoffs, quits continue to normalize

• Wage growth was probably a little stronger than expected

The latest read from the Bureau of Labor Statistics shows a labor market that delivered job growth. Nonfarm payrolls rose by roughly 178k, the strongest gain in over a year, while unemployment edged down to 4.3%, partially due to 369,000 leaving the workforce. Healthcare led the way with help from 35,000 returning to work after a strike at Kaiser Permanente ended. At the same time, job openings held near 6.9 million in the JOLTS report, signaling that labor demand remains solid even as the market transitions into a more balanced phase.

Wage growth came in at about 0.2% month-over-month, but that understates the true pace of income gains due to a decline in average hours worked; adjusting for that effect, underlying wage growth would have been closer to 0.3%.  Hiring activity is fairly normal for a good job market, and stable quit rates suggest workers are not “jumping around” while employers maintain staffing levels. Taken together, this is a labor market that continues to normalize. 

 For a deeper dive….

• A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons rose to 8.0%.

• Prime age labor force participation rate (ages 25-54) fell .1% 83.8%.

• The overall labor force participation is 61.9%. This is still 1.3% below the level of February 2020.

• In March, average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents, or 0.2 percent, to $37.38. Over the year, average hourly earnings have increased by 3.5 percent. In March, average hourly earnings of private-sector production and nonsupervisory employees edged up by 5 cents, or 0.2 percent, to $32.07.

• The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.2 hours in March. In manufacturing, the average workweek was unchanged at 40.2 hours, and overtime was also unchanged at 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours.

• APD reported that 62,000 jobs were added in February.

JOB OPENINGS AND LABOR TURNOVER – FEBRUARY 2026

The number of job openings was little changed at 6.9 million in February, the U.S. Bureau of Labor Statistics reported today. Over the month, hires decreased to 4.8 million, and total separations changed little at 5.0 million. Within separations, quits (3.0 million) were little changed while layoffs and discharges (1.7 million) were unchanged.

This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class. 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 February. The number of job openings decreased in accommodation and food services (-211,000) and in mining and logging (-12,000).

Hires

The number of hires decreased to 4.8 million (-498,000) in February and was down by 387,000 over the year. The hires rate decreased over the month to 3.1 percent. This was the lowest hires rate since April 2020 when it was also 3.1 percent. In February, the number of hires decreased in accommodation and food services (-178,000) and in construction (-88,000).

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.

In February, the number and rate of total separations were little changed at 5.0 million and 3.1 percent, respectively. The number of total separations decreased in federal government (-16,000).

In February, the number and rate of quits were little changed at 3.0 million and 1.9 percent, respectively. The number of quits decreased in accommodation and food services (-119,000), wholesale trade (-35,000), and federal government (-6,000). Quits increased in nondurable goods manufacturing (+21,000).

The number of layoffs and discharges remained unchanged at 1.7 million. The layoffs and discharges rate was little changed at 1.1 percent. The number of layoffs and discharges increased in retail trade (+72,000). Layoffs and discharges decreased in nondurable goods manufacturing (-26,000) and in federal government (-3,000).

The number of other separations decreased to 277,000 (-75,000) in February.

Establishment Size Class

In February, the job openings rate decreased for establishments with 1 to 9 employees, while the hires, quits, layoffs and discharges, and total separations rates showed little change. For establishments with 5,000 or more employees, all rates showed little or no change.

January 2026 Revisions

The number of job openings for January was revised up by 294,000 to 7.2 million, the number of hires was revised up by 53,000 to 5.3 million, and the number of total separations was revised up by 39,000 to 5.1 million. Within separations, the number of quits was revised down by 6,000 to 3.1 million, and the number of layoffs and discharges was revised up by 29,000 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.)