Little Change in Unemployment
Jobs Growth
There were 228,000 new jobs created from February to March. This compares with downwardly revised figures of 117,000 in February and 111,000 in January.
Top Industries
New growth was concentrated in healthcare and social assistance, as well as in transportation and warehousing. Gains were also recorded in the retail sector, following resolution of a strike. Federal government employment declined slightly.
Unemployment
For the past 11 months, the unemployment rate has wavered within a narrow band of 4.0% to 4.2%. Most recently, it moved from 4.1% in February to 4.2% in March.
Wages
In March, average hourly earnings again rose by 0.3%, moving the 12-month average to 3.8%.
Work Week
The average work week was unchanged in March at 34.2 hours.
Temporary Job Trends
The temporary jobs sector experienced a loss of 6,400 jobs in March, less than in the previous two months.
What Does It All Mean?
The March jobs report is a good news story of strong growth in the labor market, although it was largely overshadowed by the announcement of global tariffs earlier in the week. With 228,000 new jobs created, little change in unemployment, an increase in labor participation, and wage growth that exceeds the rate of inflation, the latest report is positive. It reflects employer confidence in the future, despite the gloom and doom expectations of many market analysts.
Historically, economists tend to downplay the strength of the labor market, which often exceeds predictions on a monthly basis. Jobs growth has clearly cooled in comparison to a post-pandemic surge, but it remains solid.
The challenge for many is that the jobs report presents a rearview snapshot of the labor market. It does not offer a clear picture of how the landscape may change in the future. Tariff detractors insist new trade policies will up-end economic growth and push the nation into a recession; supporters expect the tariffs to spur growth in the U.S., which will lead to increased employment and higher wages. The big question is how long it will take to move past the current state of turmoil. Is this the beginning of an inevitable downslide or a temporary slowdown before a surge?
As any employer knows, new hires come at a cost and a degree of risk, but they also represent an investment in the future. That reality can help move the needle in the right direction. It is likely that in the near-term, employers will keep a careful watch on the larger economy, track the changes spurred by new tariff policies, and build flexibility into their strategies in order to ensure they are prepared for whichever outcome occurs. The bottom line remains unchanged: whatever the future holds will require the right talent to ensure a competitive edge.
Sources: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, ABC, NBC, CNN, CNBC, Reuters, The New York Times, The Wall Street Journal, USA Today, FOX Business
