Jobs report March 2026:
The US labor market rebounded in March, with job creation much stronger than expected, but the overall picture of a slow-growing labor market remained intact.
Non-farm payrolls According to Friday’s report from the Bureau of Labor Statistics, there was a seasonally adjusted increase of 178,000 for the month; That’s a stark reversal from February’s decline of 133,000 and better than the Dow Jones consensus estimate of 59,000. February’s figure was revised to 160,000, with a decrease of 41,000, and January’s figure was revised to 160,000, with an increase of 34,000, bringing the three-month average to around 68,000.
With the increase in job creation, the unemployment rate decreased to 4.3%.
As before, healthcare was responsible for most of the growth, adding 76,000 people to the sector. A strike at healthcare provider Kaiser Permanente in February had a negative impact on the industry. The BLS said ambulatory health services increased by 54,000 and 35,000 returned from striking workers.
While an increase of 26,000 was seen in construction, an increase of 21,000 was recorded in transportation and storage.
On the downside, the federal government lost 18,000, while financial activities lost 15,000.
Although the unemployment rate fell, the move was largely driven by a 396,000-person decline in the labor force. The share of working-age Americans in the labor force fell to 61.9%, its lowest level since November 2021.
The household survey used to calculate the unemployment rate showed 64,000 fewer people had jobs. The alternative unemployment figure, which includes discouraged workers and those working part-time jobs for economic reasons, rose to 8%.
Wages also rose less than expected; average hourly earnings rose just 0.2% for the month and 3.5% from a year ago. Economists were expecting values of 0.3% and 3.7%, respectively. The annual increase was the lowest since May 2021.
US stock markets were closed for the Good Friday holiday. Stock futures were slightly negative following the report. The bond market continued to trade with Treasury yields rising ahead of the early close.
The report comes at a time when the labor market is changing and the economy must add fewer jobs to keep the broader employment picture stable. St. The St. Louis Federal Reserve recently estimated that a job increase of as little as 15,000 could keep the unemployment rate steady.
Federal Reserve officials also evaluate employment data as they plan their intentions on interest rates. Most policymakers were happy to watch the data emerge and take a patient approach; but a few have pushed for lower interest rates to overcome labor market weakness.
With inflation well above the Fed’s target and energy prices rising as the Iran war continues, markets expect little action from the central bank this year. Following the jobs report, futures pointed to virtually no chance of action at the April 28-29 Federal Open Market Committee meeting and a 77.5% probability that the Fed will remain on hold until the end of the year, according to CME Group’s FedWatch.
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