WASHINGTON — U.S. employers added 178,000 jobs in March, rebounding from a sharp decline the prior month, while the unemployment rate edged down to 4.3%, but one credit union economist is reminding that the employment numbers must come with a caveat.
According to the Labor Department, its new jobs numbers show a stronger-than-expected gain followed a revised loss of 133,000 jobs in February and exceeded economists’ forecasts of roughly 60,000 new jobs, the publications reported.
“Hiring in March beat expectations, but revisions over the prior two months netted out to near zero, leaving first quarter job growth averaging just above 60,000 per month,” Dawit Kebede, senior economist with America’s Credit Unions, said in a statement. “This is a labor market consistent with low-hire and low-fire equilibrium. Unemployment rate declined slightly as participation rate declined one-tenth of percentage point. The Federal Reserve will likely hold rates for longer, especially as inflation risks rise. Credit unions remain a trusted financial partner for their members in this environment of rising uncertainty.” –
The Details
Key details from the new Labor Department report include:
- Nonfarm payrolls: +178,000 in March
- Unemployment rate: 4.3%, down from 4.4%
- Labor force participation: Declined, helping push the unemployment rate lower
- Average hourly earnings: Rose modestly, about 0.2% for the month and roughly 3.5% year over year
Job growth was concentrated in several sectors:
- Health care and social assistance: Among the largest gains
- Leisure and hospitality: Continued hiring increases
- Construction and manufacturing: Posted moderate gains
- Federal government: Employment declined
Analysts noted that part of the drop in the unemployment rate reflected workers leaving the labor force rather than stronger hiring alone.
Slower Market
Despite March’s rebound, the broader trend points to a slower labor market, both the Wall Street Journal and New York Times reported. Hiring has cooled significantly compared with 2025 levels, and economists told the publications that reduced labor supply — tied in part to immigration and demographic trends — means fewer jobs are needed to keep unemployment stable.
The data is likely to keep the Federal Reserve cautious on interest rates, with policymakers weighing steady job growth against ongoing inflation and global economic uncertainty, according to both publications.
