The U.S. Department of Labor's Bureau of Labor Statistics said on Apr. 3 (local time) that U.S. nonfarm payrolls in March rose by 178,000 from the prior month.
Despite concerns that oil prices would surge on the back of the U.S. and Israel's invasion of Iran, potentially causing an economic slowdown, the increase was the largest since the job gains of 237,000 in Dec. 2024.
Employment last month was expected to rebound from February, with the Dow Jones consensus at 59,000, but the increase exceeded expectations. February hiring was weak due to a healthcare strike and a cold snap.
Payrolls in the previous two months were revised down by a total of 7,000 from the initial releases. The January job change was revised up to 34,000, and the February job change was revised down to 41,000.
The unemployment rate came in at 4.3%, edging down from the prior month (4.4%). However, the labor force participation rate slipped to 61.9% from the prior month (62%). The drop in unemployment was driven more by reduced labor supply than by an increase in employment.
By industry, the healthcare institutional sector added 76,000 jobs, leading the gains, while construction (26,000), transportation and warehousing (21,000), and social assistance (14,000) also contributed to job growth.
Average hourly earnings in March rose 0.2% from the prior month, below market expectations of 0.3%. They were up 3.5% from a year earlier, also missing the market forecast of 3.7%.