Quick Facts:
- Both the unemployment rate, at 4.2 percent, and the number of unemployed people, at 7.1 million, changed little in March.
- Job gains occurred in health care, in social assistance, and in transportation and warehousing. Federal government employment declined.
- The number of long-term unemployed (those jobless for 27 weeks or more), at 1.5 million, changed little in March. The long-term unemployed accounted for 21.3 percent of all unemployed people.
- The number of people employed part time for economic reasons, at 4.8 million, changed little in March.
Looking Forward:
- March’s gains are far ahead of the 117,000 roles added in February. Health care, transportation and warehousing were among the sectors that added roles in March, while federal hiring declined amid sweeping cuts to the government’s workforce.
- Friday’s employment data were collected prior to the Trump administration’s latest tariff hikes. But the report does provide a snapshot of how employers responded to some of Trump’s earlier levies against China, Canada, and Mexico—as well as federal layoffs and spending cuts.
- The number of workers employed by the federal government declined by 4,000 in March. The drop, which follows February’s loss of 11,000 positions, is likely not the full scope of the federal job cuts. About 24,000 federal employees—most probationary workers—across 18 agencies were terminated in recent months as part of Trump’s mandates, according to court filings.
- For March, health care was the leading growth area, consistent with prior months. The industry added 54,000 jobs, almost exactly in line with its 12-month average. Other growth areas included social assistance and retail, which both added 24,000, while transportation and warehousing showed a 23,000 increase. Federal government positions declined by just 4,000, despite the Elon Musk-led efforts, though the Department of Government Efficiency, to pare the federal workforce. However, the BLS noted that workers on severance or paid leave are counted as employed.
Source: U.S. Bureau of Labor Statistics – The Employment Situation – March 2025
