Economy
Apr 01, 2026
US Job Openings Plunge to Six-Year Low as Hiring Slumps Amid Trump-Era Trade Tensions and Rising Energy Costs
US job openings fell to their lowest level in six years, with hiring hitting the weakest point sinc…
The Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS) shows that job openings dropped by 358,000 to 6.882 million in February, the smallest tally since 2020 and well below the forecast of 6.918 million.
February’s hiring figures also slipped, with 4.8 million workers hired—the lowest monthly total since March 2020. The quit rate fell to 1.9%, equating to roughly three million workers leaving their jobs, indicating growing reluctance to switch employers.
Consumer confidence is eroding in tandem. A University of Michigan survey released in March recorded a 6% year‑over‑year decline and a 5.8% drop from the previous month, pushing sentiment to its weakest point since December.
Economist Heather Boushey of the University of Pennsylvania linked the sentiment dip to President Donald Trump’s second‑term policies, noting that “people are getting super frustrated with Trump’s economy.”
Senior fellow Michele Evermore of the National Academy of Social Insurance warned that the modest decline in quits “indicates that workers continue to have a pessimistic view of their chances on the open market,” and urged state governments to bolster unemployment systems as a counter‑cyclical buffer.
Policy uncertainty is a key driver. Since his re‑election, Trump has pursued aggressive tariffs, some of which were recently blocked by the Supreme Court’s decision that the International Emergency Economic Powers Act cannot be used for that purpose, leaving the tariff regime in flux.
Compounding the trade dispute, the U.S. involvement in the February 28 attack on Iran sparked a regional war. Iran’s retaliation—shutting the Strait of Hormuz—has tightened global oil supplies, pushing U.S. gasoline prices to $4.018 per gallon, up more than a dollar from the previous month.
Federal Reserve Chair Jerome Powell cautioned that the economy faces a “zero‑employment‑growth equilibrium” with downside risks, while the central bank has so far kept interest rates steady and will announce its next policy decision in late April.
Private, non‑farm payroll growth has also slowed, averaging just 18,000 jobs per month over the three months ending February, underscoring the tepid demand for new labor.
Despite the labor market gloom, equity markets rallied during midday trading on Tuesday, with the Dow Jones Industrial Average up 1.9%, the Nasdaq climbing 3.4%, and the S&P; 500 gaining 2.3%.
#US Labor Market
#Trump Administration
#Trade Policy
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