U.S. nonfarm payrolls rebounded in March, rising by 178,000 versus expectations for a 51,000 gain. The unemployment rate edged down to 4.3% from 4.4%, according to the Bureau of Labor Statistics.
Revisions painted a more nuanced picture. January’s increase was revised up by 34,000 jobs to 160,000, while February’s decline was revised deeper, to a loss of 133,000 positions. On net, employers added 7,000 fewer jobs than initially reported, underscoring that momentum has cooled even with the March beat.
Hiring remained concentrated in a handful of sectors. Health care added 76,000 jobs, while construction and transportation and warehousing contributed 26,000 and 21,000 positions, respectively. Federal government employment continued to shrink, falling by 18,000.
Wage growth moderated slightly. Average hourly earnings rose 0.2% on the month to $37.38, leaving year-over-year gains at 3.5%.
For policymakers, the report arrives against a complex backdrop of elevated energy prices and geopolitical risk from the Iranian war, which officials have flagged as a potential headwind to both inflation and employment. The Fed has signaled it is in “wait and see” mode, and this mixed but firmer jobs print will be parsed for signs of whether February was an anomaly or an early warning on labor demand.
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