There was a surge of 228,000 new jobs.
The U.S. job market showed continued growth in March, with job gains accelerating despite ongoing economic concerns. The U.S. Labor Department reported on Friday that employers added 228,000 jobs last month, surpassing the 135,000 jobs expected by LSEG economists. The unemployment rate rose slightly to 4.2%, a small increase from the previous month and above expectations. The job numbers for January and February were revised down, with January’s figure adjusted from 125,000 to 111,000, and February’s from 151,000 to 117,000. These revisions combined resulted in a reduction of 48,000 previously reported jobs.
Private sector employment grew by 209,000 jobs in March, significantly outpacing the projected 127,000. The government sector added 19,000 jobs, with federal employment declining by 4,000, following a reduction of 11,000 jobs in January. The report also highlighted that employees on paid leave or receiving severance pay are still counted as employed in the establishment survey. Manufacturing saw a modest increase of 1,000 jobs, falling short of the expected 4,000, while the healthcare sector added 53,600 jobs, keeping pace with the average monthly gain of 52,000 over the past year.
Other notable gains included 24,200 jobs in social assistance, surpassing the average monthly gain of 19,000, and 23,700 jobs in retail, though losses in general merchandise retailers offset gains in food and beverage retail. The transportation and warehousing sector added 22,900 jobs, nearly double the 12,000 average monthly gain from the past year. Job growth within the sector was led by couriers and messengers (+15,800) and truck transportation (+9,600), while warehousing and storage saw losses.
The labor force participation rate remained steady at 62.5%, showing little change over the month or the past year. Despite the robust job numbers, concerns about inflation, rising consumer prices, and the impact of President Trump’s tariffs have clouded the economic outlook. Analysts are increasingly worried about a potential recession, with rising trade tensions, particularly with China, contributing to uncertainty.
Economists note that March’s employment report, while stronger than expected, may not fully reflect the challenges ahead. Nancy Vanden Houten from Oxford Economics suggested that while the data gives the Federal Reserve some breathing room, the ongoing inflation risks could push inflation close to 4% this year. Meanwhile, market expectations for a potential interest rate cut in May have risen, reflecting growing concerns about the economic impact of tariffs and inflation. Federal Reserve Chair Jerome Powell is expected to address these issues in his upcoming remarks on the economic outlook.
