The job market is officially cooling down, according to the latest Job Openings and Labor Turnover report from the U.S. Bureau of Labor Statistics.
Job openings fell by 384,000 by the end of March. And while the number of hires remained unchanged, layoffs and discharges increased by 248,000, putting the percentage rate at 1.2% — its highest rate since December 2020, according to analysis by Nick Bunker, economic research director at Indeed Hiring Lab. The quits rate also fell, signaling workers don’t feel comfortable leaving their current jobs.
“The cooldown in the US labor market is now unambiguous — it’s happening,” Bunker wrote.
While job openings still outnumber unemployed workers, employers shouldn’t expect those conditions to last much longer, he added.
Richard Wahlquist, president and CEO of the American Staffing Association, noted that employers are already battening down the hatches.
“ASA members are reporting that client companies are becoming more cautious with their hiring as they try to ride out the wave of a possible economic downturn,” Wahlquist said in a statement sent to HR Dive. “Nevertheless, many clients continue to report real difficulties in finding workers with the skills needed to fill the most in-demand jobs.”
That dichotomy is why employers are increasingly focusing on retention and development in-house, other studies have shown. Some surveys and analysis note that employers may be “labor hoarding” to avoid the pitfalls still plaguing them after layoffs they undertook during the Great Recession.
But employers may need to be ready for choppy waters ahead, regardless. “The latest data does not entirely scrap hopes for a soft landing, but they may be starting to fade,” Bunker said.
