WASHINGTON (AP) — U.S. job openings fell last month to 6.9 million and hiring was weak, more signs of sluggishness in the American labor market.
The Labor Department reported Tuesday that job vacancies slid from 7.2 million in January.
The Job Openings and Labor Turnover Summary (JOLTS), showed that layoffs rose. Just 2.97 million people quit their jobs in February. Typically, people giving up their jobs is a sign of confidence in their prospects for finding better pay or working conditions elsewhere. The number of people leaving jobs last month was the fewest since August 2020.
A measure of hiring also deteriorated: The JOLTS report showed 4.85 million gross hires in February, fewest since April 2020. The hiring rate — the number of hires as a percentage of employment — dropped to 3.1%, also the lowest since April 2020, at the height of the COVID-19 pandemic that shut down economic activity.
The numbers show the labor market before the Iran war drove up gasoline prices and increased uncertainty.
Christopher S. Rupkey, chief economist at the financial research firm fwdbonds, wrote in a commentary that the drop in openings "as the Iran war started is not a good omen for the health and vitality of the labor market. Companies have grown more cautious as the price of gasoline has risen over a dollar a gallon since the war began, and consumers have become much less confident.''
The U.S. job market has sputtered over the past year, reflecting the lingering impact of the high interest rates and uncertainty over President Donald Trump’s economic policies and the impact of artificial intelligence.
Employers added fewer than 10,000 net jobs a month in 2025 – weakest hiring outside a recession since 2002. This year started out with a decent 126,000 new jobs in January. But in February, the United States lost 92,000 jobs. When the Labor Department releases March jobs numbers Friday, they’re expected to show that hiring rebounded and that companies, nonprofits and government agencies added 60,000 jobs this month.
Despite sluggish hiring, the unemployment rate has stayed low – at 4.4%. Economists refer to a low-hire, low-fire job market in which companies are hesitant to add staff but don’t want to let go of the workers they have. There are growing worries that AI is taking over entry-level work and that companies are reluctant to make hiring decisions until they better understand how they are going to use AI.
A now hiring sign sits on the side of the road in Garland, Texas, Monday, March 23, 2026. (AP Photo/LM Otero)
WASHINGTON (AP) — U.S. consumer confidence inched higher in March despite soaring energy prices brought on by the war in Iran.
The Conference Board said Tuesday that its consumer confidence index rose modestly to 91.8 in March from 91 in February.
The board said that while rising costs due to tariffs and spiking oil prices induced by the conflict in the Middle East did not affect the topline confidence reading, there was increasing pessimism in other measures of the survey, including expectations of higher inflation.
Respondents’ comments about oil, gas and the war spiked and consumers’ 12-month inflation expectations surged to levels last seen in August 2025 when anxiety over tariffs peaked.
U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday as the war caused fuel prices to soar worldwide.
According to motor club AAA, the national average for a gallon of regular gasoline is now $4.02 — up more than a dollar before the war began. The last time U.S. drivers were collectively paying this much at the pump was nearly four years ago, following Russia’s invasion of Ukraine.
A measure of Americans’ short-term expectations for their income, business conditions and the job market fell 1.7 points to 70.9, remaining well below 80, a marker that can signal a recession ahead. It’s the 14th consecutive month that reading has come in under 80.
The index for consumers’ assessments of their current economic situation rose by 4.6 points to 123.3.
Government data from earlier in March showed that an inflation gauge closely monitored by the Federal Reserve moved 2.8% higher in January in the latest sign that prices were persistently elevated even before the Iran war caused spikes in oil and gas costs.
Excluding the volatile food and energy categories — which the Fed pays closer attention to — core prices rose 3.1%, up from 3% in the prior month and the highest in nearly two years.
Consumer prices and prices at the wholesale level also remain elevated.
Those higher prices and the prospect of even higher inflation due to the Iran war makes it unlikely that the Federal Reserve will cut interest rates any time soon.
The Fed cut its benchmark interest rate three times to close 2025 in an attempt to support a flagging labor market. However, because lower rates can exacerbate inflation, which remains above the Fed’s 2% target, the Fed has left its overnight lending rate alone at its past two meetings.
While consumers' views of current employment conditions improved slightly, perceptions of the labor market six months from now edged downward.
The Labor Department reported earlier in March that U.S. employers unexpectedly cut 92,000 jobs in February, a sign that the labor market remains under strain. Economists had expected 60,000 new jobs in February. The unemployment rate rose to 4.4%.
Another report Tuesday showed that U.S. job openings fell slightly in February to 6.9 million from 7.2 million in January.
The surprisingly weak employment picture in February adds to the economic uncertainty sparked by the war with Iran, which has caused oil prices to surge and saddled business and consumers with unforeseen costs.
The country’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over President Donald Trump’s tariffs and the lingering effects of elevated interest rates.
U.S. economic growth slowed to 1.4% in the final three months of last year, following two surprisingly strong quarters. Growth in the fourth quarter was dragged down by the six-week shutdown of the federal government and a pullback in consumer spending.
According to the Tuesday’s survey results, consumers’ plans to buy cars continued to rise in March, with used cars remaining the clear preference.
Homebuying expectations fell in March as the spring buying season kicks off in the midst of a yearslong housing market slump.
Expectations that stock prices will be higher a year from now plunged, the board said.
Ray Ruda fills his van with fuel at a gas station Wednesday, March 25, 2026, in Brentwood, Tenn. (AP Photo/George Walker IV)
