US job openings broadly steady as concerns swirl around Trump tariff plans

Published 01/04/2025, 15:26
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - U.S. job openings were little changed in February, but still lower than expected, as worries swirl around the impact of President Donald Trump’s trade policies on the American labor market.

The U.S. Job Openings and Labor Turnover Survey, a proxy of labor demand, dipped to 7.568 million on the last day of February, down from an upwardly-revised prior level of 7.762 million. It has fallen by 877,000 over the year, data from the Labor Department’s Bureau of Labor Statistics showed.

Economists had anticipated that the reading would come in at 7.690 million.

Hiring remained steady at 5.4 million, with the amount of additions in all industries largely unchanged.

The figures come as investors await a slew of economic indicators this week, including ADP’s private payrolls data and the all-important nonfarm payrolls report for March.

In a note to clients, analysts at BofA flagged that "unprecedented policy uncertainty" threatens to weigh on hiring.

Recent data have pointed to fading U.S. business and consumer confidence, with doubts swirling around how companies will approach future spending and hiring due to Trump’s tariff plans. Trump is due to unveil a slew of new levies on April 2, before the release of the jobs report on Friday.

Separately on Tuesday, the Institute for Supply Management’s manufacturing purchasing managers’ index was "grim," analysts at Vital Knowledge argued. The headline figure dropped to 49.0 in March, sinking from 50.3 in the prior month and below consensus forecasts, with demand weak and prices surging. A number below 50 indicates contraction in the manufacturing sector.

"Demand and production retreated and destaffing continued, as panelists’ companies responded to demand confusion. Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth," said Timothy Fiore, Chair of ISM’s Manufacturing Business Survey Committee, in a statement.

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