The U.S. economy added about 228,000 jobs in March – higher than was expected – while the unemployment rate increased slightly to 4.2%, according to the U.S. Bureau of Labor Statistics.
Sectors seeing the strongest job growth for the month included health care, social assistance, and transportation and warehousing. Employment also increased in retail trade, partially reflecting the return of workers from a strike. Federal government employment declined.
The number of unemployed people, at 7.1 million, was basically flat in March.
The unemployment rate has remained in a narrow range of 4.0% to 4.2% since May 2024, the BLS notes.
The number of long-term unemployed (those jobless for 27 weeks or more), at 1.5 million, was also basically flat in March. The long-term unemployed accounted for 21.3% of all unemployed people.
The labor force participation rate, at 62.5%, also changed little over the month and over the year. The employment-population ratio held at 59.9%.
Wages increased by an average of 9 cents, or 0.3%, to $36.00 per hour. Over the past 12 months, average hourly earnings have increased by 3.8%.
In March, average hourly earnings of private-sector production and nonsupervisory employees edged up by 5 cents, or 0.2%, to $30.96.
Sam Williamson, senior economist for First American, says the strong performance of the labor market this spring “likely cements the Fed’s ‘wait-and-see’ stance on rate cuts.”
“The broad-based March surge in jobs came as more people joined the labor force, causing a slight uptick in the unemployment rate,” Williamson says in a statement. “At first glance, this strong report highlights the Federal Reserve’s stance that the job market is holding steady, offering some optimism amid economic uncertainty.”
“In March, 232,000 people entered the labor force, signaling increased job-seeking activity,” Williamson adds. “The 4.2 percent unemployment rate matches the Fed’s ‘long-run’ projection from last month’s Summary of Economic Projections and remains below the 4.4 percent forecast for 2025. The increase was largely driven by new entrants, often viewed as a positive trend.”
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