U.S. job openings have fallen to their lowest level in six years as labor demand stagnates amid concerns about trade, immigration and the growing role of artificial intelligence (AI).
The number of job openings decreased by 358,000 to 6,882,000 in February, according to the monthly Job Openings and Turnover Survey (JOLTS) released Tuesday by the U.S. Department of Labor.
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This was lower than the expected number of job openings for the same month, which was 6.918 million, and was a sharper decline than experts expected. The January JOLTS report recorded 7.24 million job openings.
Recruitment activity also slumped in February, with the number of hires decreasing by 498,000 to a total of 4.8 million. This is the lowest hiring level since March 2020, at the height of the COVID-19 pandemic.
The number of people leaving their jobs to take up new jobs is also decreasing, reflecting the stagnation in the job market. Three million people quit last month, a rate of 1.9%.
In addition to the sluggish job market, widespread weakness in consumer sentiment continues.
Consumer sentiment, a measure of economic confidence, fell 6 percent from the same time last year and 5.8 percent from the previous month, according to a March report from the University of Michigan.
As a result, consumer sentiment fell to its lowest level since December.
Economist and University of Pennsylvania professor Heather Boushey explains that part of the decline is a response to President Donald Trump’s policies during his second term.
“People are very frustrated with the Trump economy. Prices for big-ticket items and meals are already rising, and this morning, consumer sentiment across almost all demographics was at its lowest in 2026,” Boushey said in a statement provided to Al Jazeera.
Even the reluctance of workers to change jobs may indicate a broader displeasure with current economic conditions.
The fact that turnover fell slightly this month “suggests that workers remain pessimistic about their chances in the open market,” said Michelle Evermore, a senior fellow at the National Academy of Social Insurance.
He added that the US government needs to plan policies to deal with future market fluctuations.
“It would be disrespectful not to say that states should seriously consider their unemployment systems and their readiness to provide effective counter-cyclical stabilizers,” Evermore told Al Jazeera.
There are several factors contributing to the economic instability under the Trump administration. Since returning to office for a second term, President Trump has introduced sweeping tariffs that are facing legal challenges in court.
One of those battles culminated in a Supreme Court decision banning the use of the International Emergency Economic Powers Act (IEEPA) to enforce tariffs. As a result, the tariff regime remains in flux as President Trump moves to other legal mechanisms to impose import taxes.
Then there was President Trump’s decision to join Israel in attacking Iran on February 28th. Since that attack, regional wars have erupted in the Middle East, and Iran has retaliated by cutting off trade through the Strait of Hormuz, a key artery for oil and natural gas.
The blow to the global fossil fuel industry has caused prices to soar. In the United States, for example, the average price of a gallon of gasoline (3.79 liters) was $4.018, up more than $1 from an average of $2.982 a month ago, according to a survey by the American Automobile Association (AAA).
“As the war with Iran enters its fourth week, energy prices are unlikely to recover quickly and the bad mood is likely to persist,” Boushey explained.
Independent experts within the government have also warned of a stagnant job market.
Earlier this month, Federal Reserve Chairman Jerome Powell warned that there was a “sense of downside risk” to a “zero employment growth equilibrium.”
The US central bank, the Federal Reserve, is under pressure to cut interest rates under President Donald Trump’s second term.
So far, banks have chosen to keep interest rates constant. The next decision on interest rates is expected to be announced in late April.
Last week’s Labor Department report highlighted a decline in demand for new workers among businesses.
According to the report, employment growth at private non-agricultural companies has slowed, with an average of 18,000 employees per month in the three months to February.
President Trump’s crackdown on immigration has been cited as a reason for the decline.
Despite the labor market downturn, US markets are trending higher in intraday trading. Since the market opened on Tuesday, the Dow Jones Industrial Average has risen 1.9%, the Nasdaq 3.4% and the S&P 500 2.3%.
