The economy added more jobs than expected in March
Economists had expected just 59,000 new jobs, but payrolls grew by 178,000. Unemployment held steady at 4.3%, as healthcare again led job gains
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March payrolls climbed by 178,000, the Bureau of Labor Statistics said Friday. That easily outpaced the 59,000-job gain that Wall Street analysts had penciled in via Dow Jones consensus estimate, according to CNBC. The unemployment rate came in at 4.3%, a tenth of a percentage point below what forecasters had anticipated.
March's headline number stands in contrast to a difficult stretch for the labor market. February's jobs report showed the economy shedding 92,000 positions, with the information sector losing jobs at double its prior-year monthly average and federal government employment continuing to fall. Aaron Terrazas, a former chief economist at Glassdoor, noted at the time that white-collar payrolls had contracted for 29 consecutive months — a stretch without precedent outside of a recession in the past 70 to 80 years.
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Private-sector hiring data had offered a mixed preview. ADP's March report showed the private sector adding 62,000 jobs, anchored by gains in healthcare and construction but offset by losses in trade, transportation, and utilities. That report described an economy increasingly reliant on healthcare hiring driven by an aging population — a concentration that economists cautioned benefits workers unevenly.
Healthcare again led job gains in March, according to the new BLS report adding 76,000 positions. Ambulatory healthcare services accounted for 54,000 of those, partly reflecting a gain of 35,000 in physician offices as workers returned from a strike. Hospitals added 15,000 jobs. Healthcare had averaged 29,000 new jobs per month over the prior 12 months.
Construction added 26,000 jobs. Transportation and warehousing grew by 21,000, driven largely by a gain of 20,000 in couriers and messengers. Social assistance added 14,000 positions, primarily in individual and family services.
Federal government employment fell by 18,000 in March. Since reaching a peak in October 2024, federal employment has declined by 355,000, or 11.8 percent. Financial activities shed 15,000 jobs, reflecting a loss of 16,000 in finance and insurance.
March's gains followed a revised loss of 133,000 jobs in February — a steeper decline than the previously reported 92,000. January's figure was revised upward by 34,000, to 160,000. Combined, January and February employment came in 7,000 lower than prior estimates.
Average hourly earnings for private nonfarm payroll employees rose nine cents, or 0.2%, to $37.38 in March. Over the past year, wages have risen 3.5%. The average workweek edged down by 0.1 hour to 34.2 hours.
The number of long-term unemployed — those out of work for 27 weeks or more — held at 1.8 million in March but has risen by 322,000 over the past year. The labor force participation rate remained at 61.9%.