February US Job Openings Fall to 7.6M as Layoffs Rise/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. job openings declined to 7.6 million in February, indicating a gradually cooling but resilient labor market. Layoffs increased, with federal job cuts reaching pandemic-era levels. Economists forecast a continued slowdown in hiring through March.
US Job Openings Drop: Quick Looks
- February job openings declined to 7.6 million, down from 7.8M in January.
- Openings have steadily dropped since peaking at 12.1 million in March 2022.
- Layoffs rose to 1.8 million in February, including 18,000 federal jobs lost.
- Federal layoffs were the highest since October 2020, tied partly to Elon Musk’s workforce cuts.
- The job market remains strong but is clearly cooling after post-pandemic surges.
- Economic uncertainty grows amid Trump’s trade threats, immigration plans, and agency purges.
- March’s jobs report is expected to show 125,000 new jobs, with unemployment at 4.2%.
February US Job Openings Fall to 7.6M as Layoffs Rise
Deep Look
In February 2025, the U.S. job market continued to show signs of slowing, although it remains fundamentally strong. According to new data from the Labor Department, employers posted 7.6 million job openings, reflecting a modest dip from 7.8 million in January and a more notable drop from 8.4 million one year earlier. These figures highlight a steady decline from the pandemic-era high of 12.1 million openings in March 2022, when hiring surged as the economy reopened.
This decline signals a cooling labor market, one that is transitioning from the frenzied hiring pace of the COVID recovery period to a more measured and sustainable level. Yet, even with the slowdown, the job market appears to be functioning healthily and remains in line with pre-pandemic norms.
In contrast, layoffs ticked upward, climbing to 1.8 million in February, up from 1.7 million in January. The rise was most pronounced in the federal sector, which recorded 18,000 layoffs—the highest since October 2020, during the height of the COVID-19 pandemic. Analysts have partially attributed this surge in public sector job cuts to actions by Elon Musk, whose sweeping layoffs across his various ventures have begun influencing national data trends.
The private sector has not been immune to volatility, but the labor market’s durability continues to surprise economists. That said, the landscape is evolving. The rapid hiring seen between 2021 and 2023 has noticeably lost steam. The number of available positions continues to inch downward, suggesting employers are becoming more cautious amid economic and political uncertainty.
One of the key contributors to this uncertainty is the return of former President Donald Trump to the political spotlight. His trade war rhetoric, vows to overhaul federal employment, and immigration crackdown promises—including plans to deport millions of undocumented workers—are casting a shadow over the hiring outlook. Businesses wary of sweeping policy changes may choose to slow recruitment as they wait to see how the political environment unfolds.
All eyes are now on the upcoming March jobs report, scheduled for release this Friday. Analysts from the data firm FactSet expect it to show 125,000 jobs added during March—down from 151,000 in February and below the 2024 monthly average of 168,000. This forecast would mark another step in the labor market’s deceleration. However, the projected 4.2% unemployment rate remains low by historical standards, underscoring that, while the job market may be slowing, it is not faltering.
Despite the cooling, the U.S. labor market is still robust compared to international standards. Job seekers continue to find opportunities, albeit with more competition, while employers are adapting to slower growth with strategic hiring.
Overall, the current trends suggest the U.S. economy is entering a new phase of employment normalization—steady, less explosive, but still resilient.
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