U.S. private-sector employers ramped up their demand for workers in late March, while layoffs fell broadly and worker confidence strengthened, underscoring the labor market’s resilience heading into the second quarter, according to Labor Department data released Tuesday.
The number of private-sector job openings increased in March, helping to more than offset a broader decline in total openings driven by reductions in government hiring. Employers posted 7.19 million vacancies on the last business day of the month, down slightly from a revised 7.48 million in February. Openings remain above pre-pandemic levels, highlighting sustained employer demand for workers even amid broader economic policy shifts.
The data indicate that demand for workers remains solid as employers continue to expand payrolls and seek new hires despite global economic uncertainties and trade anxiety driven stock market volatility. The Trump administration’s efforts to reshape trade relationships through tariffs and to streamline the federal workforce appear so far to be advancing without disrupting private-sector hiring, which remains steady across most industries.
The administration will receive an early evaluation of its progress in the jobs report on Friday, where projections call for continued job gains and a steady unemployment rate, consistent with a labor market that remains strong. On Wednesday the government’s initial estimate of first-quarter gross domestic product is released, with economists forecasting a slowdown from a 2.4 percent pace at the end of last year to just a 0.2 percent pace of growth.
Hiring held steady at 5.4 million, and layoffs and discharges fell to 1.6 million, the lowest level since June 2024. Private-sector layoffs declined across nearly every major industry, including retail trade, manufacturing, financial activities, and transportation and warehousing, reinforcing employer confidence in future business conditions.
In manufacturing — a sector closely watched for signs of pressure from recent trade policies — job openings increased slightly to 449,000. Hiring in manufacturing remained steady at 319,000 for the month, and layoffs declined, with durable goods industries seeing particular improvement. These results suggest that demand for factory workers remains stable despite broader fears about tariffs or slowing growth.
Workers also signaled growing optimism, with the quits rate edging higher to 2.1 percent — a historically strong reading that suggests Americans remain confident in their ability to find new opportunities. The total number of voluntary departures rose to 3.3 million, with quits increasing particularly in leisure and hospitality and financial services.
Meanwhile, the Trump administration’s efforts to streamline government operations—including the Elon Musk lead Department of Government Efficiency, or DOGE—showed clear progress. Federal job openings fell sharply, down by 36,000 from the prior month, while federal hiring remained substantially lower compared with a year ago. Openings also declined in state and local governments, reflecting a broader push to rein in public-sector growth. Job openings in government-adjacent sectors such as health care and social assistance fell by 37,000, further illustrating the administration’s impact beyond the direct federal workforce.
While total job openings are down from the record levels reached in 2022, the labor market overall remains strong and well-positioned, showing little sign of disruption from recent trade measures or other economic headwinds. The number of vacancies per unemployed worker remained historically elevated at 1.0 — down from pandemic-era peaks but consistent with a robust labor market by historical standards.
The JOLTS report captures labor market conditions at the end of March, offering a snapshot of employer demand as the economy moved into April. The Labor Department will release the April employment report on Friday, providing a fuller picture of job growth and unemployment trends.
