U.S. Hiring Slows to 15-Year Low as Worker Confidence Drops

New consumer and labor data is raising concerns about the strength of the U.S. job market.

According to the latest figures, businesses are adding workers at the slowest pace seen in 15 years, excluding the pandemic period. Hiring as a percentage of total employment dropped to 3.1 percent at the end of the month, signaling a significant slowdown in workforce expansion.

The data reflects conditions prior to escalating tensions in the Middle East involving Iran, meaning additional economic uncertainty could still impact future reports.

While layoffs have remained relatively stable, another key indicator is shifting—fewer workers are voluntarily leaving their jobs. The quits rate has fallen to its lowest level since 2020, suggesting workers are less confident they can secure new opportunities if they leave their current positions.

Industry-specific data shows the slowdown is not evenly distributed. The hardest-hit sectors in February were construction and professional services, both of which saw notable declines in hiring activity.

Economists often view the quits rate as a measure of worker confidence, and the current drop points to growing caution among employees. Combined with slower hiring, the trend may signal a cooling labor market after years of strong growth.

As businesses navigate economic uncertainty, the latest numbers suggest both employers and workers are becoming more cautious about what comes next.