U.S. job openings fell to near two-year low in March

May 2 (UPI) -- The job market in the United States got tighter in March with the Labor Department reporting the fewest job openings in the past two years, according to statistics released on Tuesday.

The monthly Job Openings and Labor Turnover Survey showed 9.59 million job openings at the end of March, down from 9.97 million reported in February. While job openings shrank, layoffs and discharges increased by 248,000 to more than 1.8 million.

The report said hires changed little in March at 6.1 million. The same went for separations at 5.9 million. The survey said 3.9 million people quit their jobs in March, like February. That number is well off the 4.4 million quits the Labor Department recorded in March 2022 as part of the so-called "Great Resignation."

Transportation, warehousing, and utilities saw the biggest drop in job openings with 144,000 fewer positions open in March. Education services had the biggest increase with 28,000 more spots open over the same time.

The rate of total separations in March of 3.8% held steady for the fourth consecutive month. Total separations decreased in accommodation and food services by 107,000. Separations increased in construction by 104,000. The number of people quitting accommodation and food service jobs decreased by 178,000.

Layoffs and discharges increased in construction by 112,000, in accommodation and food services by 63,000), and healthcare and social assistance by 42,000. Separations decreased in finance and insurance by 31,000 and in real estate and rental and leasing by 7,000.

The Labor Department's JOLTS report is one of the reports closely watched by the Federal Reserve to judge the overall health of the U.S. economy and the rate of inflation. That plays one factor in how the central bank chooses to increase and lower interest rates or to hold them steady.

A group of lawmakers, led by Sen. Elizabeth Warren, D-Mass., urged the Fed to stop interest rate hikes to avoid damaging the economy as the central bank prepares to make its next policy announcement Wednesday.