According to the Labor Department, the US labor market continued to add jobs at a strong pace in March, with payrolls increasing by 236,000. The unemployment rate also ticked down to 3.5%, the lowest level seen in over half a century. This comes despite the Federal Reserve’s efforts to cool off the economy, indicating that employers still have a high demand for workers. The payroll gains are in line with economists’ expectations, although there are signs of a cooling trend in hiring.
The March gains are robust, but revisions from the Labor Department show that the economy added 472,000 jobs in January and 326,000 payrolls in February. Economists are closely watching the March jobs report to confirm whether the economy continues to pick up steam. To put a lid on inflation, Fed officials have stated that they want to see a better balance between demand for workers and the supply.
Average hourly earnings, which measure wage growth, rose by 0.3%, while hourly earnings for the year through March increased by 4.2%. Additionally, the labor force participation rate, which represents the share of people employed or searching for jobs, rose to 62.6%, slightly higher than the 62.5% recorded in February.
It is important to note that the surveys used to compile the jobs data were conducted in mid-March, before the collapse of Silicon Valley Bank and Signature Bank, which sparked fears about the financial system’s health. Despite this uncertainty, the strong March jobs report indicates that the US labor market is still healthy and resilient.
US labor market added 236,000 jobs in March, with the unemployment rate at a 50-year low. While there are signs of a cooling trend in hiring, the robust gains and wage growth suggest that employers still have a high demand for workers. The March jobs report is an encouraging sign for the US economy and its labor market
