U.S. employers added 178,000 jobs in March, even as businesses faced higher costs from oil and rising inflation.
The upbeat job numbers, released Friday by the Bureau of Labor Statistics, exceeded many analysts’ expectations. Human resources provider ADP had projected a 62,000-job increase in the private sector for March. Because the U.S. lost government jobs, according to the BLS, the latest figures indicate 186,000 private-sector jobs were added.
Coupled with recent BLS data on job turnover, the report suggests many employees are staying put while businesses freeze hiring. The February hiring rate was the lowest since April 2020, when the pandemic halted much of the nation’s job growth.
There were notable gains in the construction and manufacturing sectors, but health care jobs again accounted for the bulk of the growth.
"It's a really tricky time if you don't work in healthcare," said economist Heather Long. "It's still going to be a rough few months, I think, for hiring."
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While finding new jobs may be more difficult, the data show most workers are holding onto the ones they have. The unemployment rate held steady at 4.3% in March.
Workers also continue to see pay increases. Average weekly wages rose 3.5% over the past year, with private-sector employees seeing particularly strong gains, according to ADP.
“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” said Dr. Nela Richardson, ADP’s chief economist. “In March, this solid performance was accompanied by a boost in pay gains for job-changers.”
Meanwhile, the Bureau of Labor Statistics’ newest data doesn’t yet take into account much of the impact of the war with Iran.
The conflict has sent the price of gas soaring, and Americans anticipating the wider economic ripple effects from the war could help explain why consumer sentiment remains low.
According to a new survey, 77% of Americans say economic conditions are poor and fewer than one in three approves of President Trump’s handling of the economy.
