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US Hiring Rate Falls to 15-Year Low, Excluding Pandemic

US hiring pace slowed to its lowest level since 2011, excluding the pandemic, with a 3.1% hire rate in February. Job openings also declined to 6.88 million, indicating reduced labor demand. A separate report showed a loss of 92,000 jobs that month, suggesting stagnation. These trends point to a cooling labor market with diminished churn. The ongoing Middle East conflict has further heightened economic concerns. Data reflects potential challenges for the US economy.

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US Hiring Rate Falls to 15-Year Low, Excluding Pandemic

New data indicates US businesses hired at the slowest pace in 15 years, excluding the pandemic, signaling a cooling labor market even before Middle East tensions escalated.

Hiring Rate Drops to Historic Low

  • Hires as a percentage of total employment fell to 3.1% at the end of February, the lowest rate since April 2020 and, prior to that, since 2011.
  • The all-time low was 2.9% in 2009 during the Great Recession.

Job Openings Decline

  • Estimated job openings decreased to 6.88 million in February from 7.24 million in January.
  • This metric, a key indicator of labor demand, shows a notable dip.
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Reduced Labor Market Churn

  • Listless hiring and labor hoarding have led to a near-halt in churn, which is essential for a dynamic and healthy economy.

Economic Concerns and Geopolitical Impact

  • The February jobs report revealed a net loss of 92,000 jobs, raising alarms about a potential deeper slowdown.
  • The prolonged and escalating conflict in the Middle East has amplified existing economic fears.

This story is developing and will be updated.

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