Quick Facts:
- Total nonfarm payroll employment rose by 236,000 in March.
- The Federal unemployment rate edged down to 3.5 percent.
- Employment continued to trend up in leisure and hospitality, government, professional and business services, and health care.
- Both the unemployment rate, at 3.5 percent, and the number of unemployed persons, at 5.8 million, changed little in March. These measures have shown little movement since early 2022.
- Among the unemployed, the number of permanent job losers increased by 172,000 to 1.6 million in March, and the number of reentrants to the labor force declined by 182,000 to 1.7 million.
Looking Forward:
- Nonfarm payrolls growth in March was about in line with expectations, but showed signs that the jobs picture is in the early stages of a slowdown. Though it was close to what economists had expected, the total was the lowest monthly gain since December 2020 and comes amid efforts from the Federal Reserve to slow labor demand in order to cool inflation.
- In separate reports this week, companies reported that layoffs surged in March, up nearly 400% from a year ago, while jobless claims were elevated and private payroll growth also appeared to slow. The Labor Department also had reported that job openings fell below 10 million in February for the first time in nearly two years.
- The job gains came during a month in which the failure of Silicon Valley Bank and Signature Bank rocked the financial world. Economists expect the banking troubles to have repercussions in coming months.
- Several Fed officials said this week they remain committed to the inflation fight and see interest rates staying elevated at least in the near term. Market pricing shifted following Friday’s report, with traders now expecting the Fed to implement one last quarter percentage point hike in May.
Source: U.S. Bureau of Labor Statistics
