Understanding the Peculiar Stasis in the U.S. Labor Market

April 1, 2026

This article explores the current state of the U.S. labor market, focusing on the unexpected stability observed through recent data on job separations, quits, and layoffs. We delve into the implications of these trends for employers and the broader economic landscape.

Decoding the Quiet Shift in American Employment

Unveiling the Decline in Job Separations

Data from the Job Openings and Labor Turnover Survey (JOLTS) reveals a notable decrease in total job separations during February, plummeting to their lowest levels since 2015, excluding the COVID-19 lockdown period. This figure encompasses both voluntary and involuntary departures from employment, highlighting a broader trend of reduced movement within the workforce.

The Curious Case of Fewer Voluntary Quits

Further analysis indicates a significant drop in voluntary resignations for the second consecutive month in February. This dip brings the number of individuals choosing to leave their jobs to a point not witnessed since the 2017-2018 timeframe, apart from the immediate aftermath of the pandemic's onset. This suggests a shift in employee confidence or available opportunities, leading to less job hopping.

Layoffs: A Controlled Increase Below Historical Norms

While total separations and voluntary quits have declined, layoffs and discharges experienced a slight uptick in February, reaching 1.71 million. However, the three-month average for these involuntary separations stands at 1.68 million, which remains consistently below the figures observed in pre-pandemic years, with the exception of a single month in October 2016. This indicates that despite some increase, mass layoffs are not a widespread concern, maintaining a peculiar balance in the labor market.