Job growth in March outpaced expectations, signaling continued labor market resilience despite mounting economic uncertainties. The Labor Department reported a 228,000 increase in nonfarm payrolls, well above the revised 117,000 gain in February and beating the projected 140,000 rise.
However, the unemployment rate increased to 4.2%, slightly above forecasts. This uptick coincided with an increase in the labor force participation rate, suggesting more people entered the job market searching for work.
While the strong headline number offers reassurance, it arrives amid concerns over President Donald Trump’s newly announced tariffs, which have stirred fears of a potential trade war. The report largely ignored markets, continuing a steep sell-off as investors weighed the broader economic implications of escalating trade tensions.
Wage growth showed moderate gains. Average hourly earnings rose 0.3% in March, matching expectations, though annual wage growth slipped to 3.8%, the lowest since July 2024. The average work week held steady at 34.2 hours.
Job creation was most substantial in health care, with 54,000 positions added, which is consistent with its 12-month average. Social assistance and retail added 24,000 jobs, while transportation and warehousing grew by 23,000. Federal employment declined by 4,000, despite large-scale layoff efforts linked to the Department of Government Efficiency. These reductions may not yet be fully reflected in the data, as employees receiving severance or paid leave are still considered employed.
Broader unemployment, which includes discouraged and part-time workers, fell slightly to 7.9%. Household survey data largely aligned with payroll figures, showing a gain of 201,000 jobs. Full-time employment rose by 459,000, while part-time roles declined by 44,000.
Source: CNBC