Why is the US hiring rate so low in 2026?

The US hiring rate fell to just 3.3% in January 2026, a 13-year low, with 2025 payroll growth under 600,000 jobs. Employers are cautious due to economic factors, leading to weak labor demand despite overall growth.

How does slow job growth affect the US unemployment rate?

The US unemployment rate is at 4.4% and has been gradually rising over three years. Stagnant hiring means fewer jobs are available to absorb the labor supply, impacting job seekers and leading to longer searches.

What is the current state of the US economy alongside low hiring?

Despite the significant slowdown in hiring, the broader US economy continues to expand, showing a positive GDP growth rate. This decoupling of economic growth from job creation is an unusual trend.

Home / Business and Economy / US Hiring Plummets: A 13-Year Low Amidst Economic Growth

US Hiring Plummets: A 13-Year Low Amidst Economic Growth

11 Feb

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Summary

US hiring rate fell to 3.3%, a 13-year low, matching 2020 crisis levels.
Payroll growth in 2025 was under 600,000 jobs, far below the 1.9 million decade average.
Unemployment holds at 4.4% despite positive economic growth and low hiring.

US Hiring Plummets: A 13-Year Low Amidst Economic Growth

In January 2026, the United States reported a hiring rate of just 3.3%, a level not seen in 13 years and equivalent to the 2020 crisis. Payroll growth in 2025 reached fewer than 600,000 jobs, a drastic reduction from the prior decade's annual average of 1.9 million. The unemployment rate stands at 4.4%, indicating a significant slowdown in labor demand despite overall economic expansion.

This divergence between a growing GDP and a stagnant job market is causing concern. Companies are hesitant to hire due to factors like high interest rates and a focus on efficiency, leading to fewer job openings. For workers, this means the era of easily switching jobs is over, and opportunities for new graduates are particularly scarce.