Employers in the United States added 178,000 jobs in March, more than tripling expectations of 59,000, while the unemployment rate dropped to 4.3%.
The labor market rebounded after a lackluster February report, which showed payrolls declined by 133,000 jobs and the unemployment rate rose slightly. Job gains in March were led by healthcare, construction, transportation, and warehouse. Healthcare added 76,000 jobs. About half of those gains reflect the return of workers who had been on strike.
Construction added 26,000 jobs, while transportation and warehousing grew by 21,000, signaling continued strength in infrastructure and logistics-related sectors. Leisure and hospitality rebounded partly due to warmer weather last month, adding 44,000 jobs. Manufacturing added 15,000, but finance lost that same amount.
Federal government employment continued to decline, falling by 18,000 jobs in March and down 355,000 from its peak in October 2024 during the Biden administration.
Wages also continued to rise. Average hourly earnings increased by 0.2% in March to $37.38, following gains in February.
Markets are closed today for Good Friday, but the stronger-than-expected jobs report may influence investor expectations when trading resumes. A resilient labor market could also reduce pressure on the Federal Reserve to cut interest rates, as the central bank has pointed to persistently elevated inflation as a reason to hold off on easing policy.
