US job openings fall in March as hires surge amid labor market shifts

WASHINGTON, D.C.―U.S. job openings slipped in March, but a surge in hiring suggested the labor market was regaining its footing after struggling last year.

Job openings, a measure of labor demand, were down 56,000 to 6.866 million by the last day of March, the Labor Department’s Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report. Economists polled by Reuters had forecast 6.835 million unfilled jobs.

The job openings rate eased to 4.1% from 4.2% in February.

Hiring jumped by 655,000 to 5.554 million. The hires rate increased to 3.5% from 3.1% in February. Layoffs and discharges, however, increased by 153,000 to 1.867 million, with the rate for that category climbing to 1.2% from 1.1% in the prior month.

In Idaho, seasonally adjusted unemployment also dropped in March from 3.7% to 3.6%, according to the Idaho Department of Labor. The state’s labor force decreased -0.2% or by 2,286 people down to a little more than 1 million. Total employment in the state decreased by 1,921 jobs.

Sectors in Idaho with the biggest decreases were information (-2.3%); arts, entertainment and recreation (-2.1%); accommodation and food services (-0.6%); nondurable goods manufacturing (-0.6%); wholesale trade (-0.6%); and professional, scientific and technical services (-0.5%).

The sectors with the greatest gains in March were administrative, support and waste management services (3%); private educational service (1.7%); other services (1%); construction (0.9%); transportation, warehousing and utilities (0.9%); federal government (0.7%); and retail trade (0.5%).

Economists see growing downside risks to the labor market from the U.S.-Israeli war with Iran, which has disrupted shipping through the Strait of Hormuz, boosting the prices of oil, fertilizer, aluminum and other commodities.

Labor market stability for now is supporting financial market expectations that the Federal Reserve will keep interest rates unchanged this year. The U.S. central bank last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing rising inflation concerns.

IBR staff contributed to this report.