Job applicants had fewer jobs to apply for in March, compounded by a drop in the number of small businesses hiring.
Job openings fell to 9.6 million in March, the lowest number since April 2021, and down from a revised 10 million in February, the Labor Department said this week. Total job openings in the private sector fell to 8.5 million in March from 8.9 million in February, the government added. Unemployment in March was 3.5%. There were 1.6 vacancies for every unemployed person in March.
“‘Tightening credit conditions generally affect small businesses disproportionately, and are likely hindering their ability to invest and grow.’” The Federal Reserve on Wednesday raised its key interest rate, the 10th straight meeting with an interest-rate hike. The quarter percentage point move puts the Fed’s benchmark rate in a range of 5%-5.25%. This is just below the prior peak of rates before the Great Recession of 2008.
“Tightening credit conditions generally affect small businesses disproportionately, and are likely hindering their ability to invest and grow,” said Julia Pollak, chief economist at ZipRecruiter. And it will only likely get worse in the coming months with regional banks shoring up capital and reducing loans to small businesses, she added.