Labor Market by the Numbers
In March 2025, job openings for manufacturing ticked up by 4,000 to 449,000 from February, below the average level of job openings over the past 12 months of 474,000. Durable goods job openings stayed the same at 313,000, while nondurable goods job openings increased by 5,000 to 136,000. The overall manufacturing job openings rate stayed the same at 3.4% in March and decreased from 3.8% the previous year. The rate for durable goods manufacturing similarly stayed the same at 3.8%, while it inched up 0.1% to 2.7% for nondurable goods.
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The Headline Number: While the number of job openings ticked up in manufacturing in March, job postings fell in the larger economy to 7.2 million, a decrease of 288,000 from the previous month and 901,000 from the previous year. The job openings rate declined to 4.3%, down from 4.5% in February and from 4.9% last year.
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Why it matters: While the increase in manufacturing activity in January and February has provided a slight boost to job openings, the slowdown in activity in March and April could reduce the need for new workers. Furthermore, this data reflects a labor market that has cooled from the uniquely tight labor market seen during the pandemic when the average number of openings in the sector was 832,500 (2021– 2023) but that remains relatively tight from a historical perspective.
Weak Hiring: Although manufacturing job postings rose in March, the hiring rate remained low, staying the same at 2.5% from February. The low hiring rate highlights the challenge for manufacturers of attracting enough workers.
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Nonfarm Comparison: Meanwhile, the hires rate for the overall economy similarly stayed the same at 3.4% in March, remaining far higher than the manufacturing industry’s rate. Although the nonfarm hires rate is higher, it is about half a percentage point below its pre-pandemic level, underscoring broader hiring challenges in the still tight labor market.
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Skills-Based Approach as a Hiring Strategy: Microcredentials, which offer a more flexible approach to hiring based on experience only, could help streamline placements if used effectively as indicators of skills instead of internal assessments, providing an opportunity to raise the manufacturing hiring rate.
