The U.S. labor market rebounded sharply in March, adding 178,000 jobs as employers hired at a faster pace than expected by economists.
The unemployment rate changed little at 4.3%, the Bureau of Labor Statistics reported Friday morning. The gain reversed a revised decline of 133,000 jobs in February and exceeded the consensus forecast of roughly 59,000 new positions.
Total nonfarm payroll employment increased by 178,000 in March, the Labor Department said. Job gains occurred in health care, construction, transportation, and warehousing. February’s figure was revised down by 41,000, while January was revised up by 34,000 to 160,000.
Health care added jobs for the 50th consecutive month, with gains in construction and transportation as well. Federal government employment continued to decline. Average hourly earnings for all employees on private nonfarm payrolls rose 9 cents, or 0.2%, to $37.38. Over the year, average hourly earnings have increased 3.5%.
The number of unemployed people remained at 7.2 million. Both the unemployment rate and the level of unemployment changed little in March, the BLS stated.
The data provide the most recent snapshot of hiring before the full effects of higher energy costs and other pressures tied to the ongoing situation in the Middle East began to weigh more heavily on some sectors. Surveys for the report were largely completed by mid-March.
Economists had anticipated a much softer report following February’s decline, which had been influenced in part by a strike in the health care sector. The March turnaround marks the strongest monthly job gain since December 2024.
The three-month average of job gains now stands around 68,000, according to revised figures. The labor force participation rate fell slightly to 61.9%.
The report was released at 8:30 a.m. Eastern time on Friday, the standard schedule for the monthly Employment Situation summary. It incorporates annual benchmark revisions and updated seasonal adjustment factors.
U.S. stock futures reacted to the stronger-than-expected numbers after the report, though major markets were closed for the Good Friday holiday. The data come as President Donald Trump’s administration continues to focus on policies intended to support business expansion and job creation.
The next Employment Situation report for April is scheduled for May 8.
