US job openings drop to 7.2 million in March amid tariff-driven uncertainty

Job openings in the United States declined in March, reflecting growing economic uncertainty tied to President Trump’s trade policies. Trump had announced implementation of import tariffs in march to be effective from April but just days later, announced a 90-day pause on all countries except China.

According to Tuesday’s report from the US Labor Department, employers advertised 7.2 million positions in March — down from 7.5 million in February and 8.1 million in March 2024. The figure fell short of economists’ expectations of 7.5 million and marked the lowest level since September.

The Job Openings and Labor Turnover Summary (JOLTS) report also noted a slight uptick in voluntary resignations, a sign that workers remain confident in the labor market. Redundancies fell to their lowest point since June, further suggesting resilience in hiring.

While job vacancies remain historically elevated, they have steadily declined from a peak of 12.1 million in March 2022, during the post-pandemic recovery.

Despite elevated interest rates from the Federal Reserve aimed at curbing inflation, the labor market has shown notable durability. Both private and public sector organizations have continued to recruit workers.

However, economic prospects remain uncertain, shaped by presidential policies such as high import tariffs, reductions in federal employment, and crackdown on immigration.

Notably, the recently implemented federal employment cuts under Elon Musk’s Department of Government Efficiency had minimal impact in March. Federal dismissals fell to 8,000 — down from 19,000 in February, which was the highest since November 2020.

“The job market is continuing to hold its own, but barely,” said Robert Frick, an economist at Navy Federal Credit Union, in comments to the Associated Press. “While job openings dropped below forecasts, they haven’t reached a post-Covid low,” he added.

Frick warned that the apparent stability may be temporary: “Hiring holds steady and layoffs dipped a bit, showing that, overall, employers are clinging to the employees they have. But this is likely the calm before the storm, as layoffs are pending in government contractors, manufacturers, and other sectors impacted by government layoffs and tariffs.”