The U.S. labor market regained momentum starting in the fall of 2024, continuing into March 2025. Layoffs and discharges dropped significantly by 222,000 workers in March compared to February, reaching 1.56 million workers, the lowest since November 2023. This decline contrasts with increased layoffs at federal, state, and local governments, which reached 107,000 workers, the highest since late 2020. These figures represent workers who were fired or laid off for economic reasons but exclude retirements, deaths, and other separations.
Voluntary quits rose by 82,000 workers in March, reaching 3.33 million, the highest since July 2024. In the private sector alone, quits increased by 91,000 workers to 3.15 million. A higher quit rate indicates worker confidence and better opportunities elsewhere. However, quits remain below pre-pandemic levels, reflecting employers’ efforts to stabilize workforce churn by instilling fear through announced mass layoffs starting in mid-2022.
Hires also increased by 41,000 in March, totaling 5.41 million, the most since September 2024. The three-month average rose to 5.38 million, the highest since November 2024. Labor turnover, which includes quits, layoffs, and discharges, totaled 4.89 million in March, excluding retirements and other separations. This lower turnover rate explains the decline in job openings, which fell by 288,000 to 7.19 million in March, the lowest since September. Government job openings dropped by 59,000 to 833,000, the lowest since early 2021. Private-sector job openings declined by 229,000 to 6.36 million. This data reflects a calmer labor market with reduced churn.
— new from Wolf Street
