U.S. Job Openings Fall to Lowest Level Since 2020

As of February 6, 2026, the U.S. labor market is flashing significant warning signs. Newly released data from the Bureau of Labor Statistics (BLS) confirms that job vacancies have plunged to their lowest levels since the height of the pandemic in 2020.+1

This shift indicates a move from the post-pandemic hiring frenzy into what economists are calling a “Hiring Recession.”

📊 The Numbers: December 2025 – February 2026

The December JOLTS (Job Openings and Labor Turnover Survey) report, released yesterday, shows a sharp contraction in labor demand.

Total Openings: Dropped to 6.54 million, down from 6.93 million in November. This is well below the 7.2 million economists had forecasted.+1
The Ratio: The ratio of job openings to unemployed workers has fallen to 0.9, meaning there is now less than one job available for every person looking for work. For context, this ratio peaked at 2.0 in 2022.
Hiring Pace: Average monthly job gains have slowed to roughly 28,000 since March 2025—a massive drop from the 400,000+ monthly average seen during the 2021–2023 boom.

📉 Sector Breakdown: Where the Jobs Are Vanishing

The decline is broad-based but hit specific white-collar and consumer sectors particularly hard:

Industry	Job Openings Change	Key Driver
Professional & Business Services	-257,000	AI restructuring and reduced corporate spending.
Retail Trade	-195,000	Higher input costs and shifting consumer behavior.
Finance & Insurance	-120,000	High interest rates and digital automation.
Manufacturing	Trending Down	Impact of “Liberation Day” tariffs on supply chains.

🔍 Why is this happening now?

Several converging factors have cooled the market to 2020 levels:

“Liberation Day” Tariffs: New, sweeping trade policies have created immense uncertainty for businesses. Many firms have frozen hiring to assess the long-term impact on their bottom lines.
The AI Pivot: Rather than “hiring to grow,” companies are investing in AI to “automate to scale.” Many open roles in administrative and middle-management sectors are simply not being backfilled.
Monetary Lag: Despite recent Federal Reserve rate cuts, the “higher-for-longer” period from 2024–2025 is still weighing on capital-intensive industries like construction and tech.

📅 What’s Next?

Due to a partial government shutdown in early February, the January Employment Report (Non-farm Payrolls and the official Unemployment Rate) has been delayed and is now expected on Wednesday, February 11, 2026.

Note for Job Seekers: With the “quits rate” at a post-pandemic low (2%), people are staying in their current roles out of caution. If you are looking for a new role, the data suggests focusing on Healthcare or Public Sector roles, which remain the only major areas showing hiring resilience.