Despite economists’ forecasts of a slowdown in job growth and a weakening labor market due to 11 anticipated interest rate hikes, the latest jobs report for March delivered unexpected results. According to CNN, “Employers added 303,000 jobs in March, the Bureau of Labor Statistics reported. The unemployment rate fell to 3.8% from 3.9% the month before.”
CNN, went further to highlight that, “Annual wage gains slowed to 4.1% from 4.3%, a trajectory likely welcomed by the Federal Reserve in its efforts to tame inflation but yet a still-strong rate to help Americans recapture earnings that were decimated by the pandemic and high inflation. “Today’s jobs report raises the possibility that rather than slowing down, job growth might be holding steady,” Nick Bunker, Indeed Hiring Lab’s economic research director for North America, said in a statement. “But this strength is coming from sources that are more sustainable than those that fueled the burst of gains in 2021. March’s jobs numbers were uniformly strong, and upticks in the employment-population ratio and labor force participation in particular suggest that demand for workers is not outstripping supply, like it was a few years back.”
Which sectors added the most jobs?
USA Today stated, “Last month, health care and social assistance led the job gains with 81,000. The public sector, mostly local governments, added 71,000; construction, 39,000; and leisure and hospitality, which includes restaurants and bars, 49,000.” However, its mainly government healthcare and hospitality jobs driving the trend which could lead to, “…a labor market that would downshift dramatically in coming months,” as reported by USA Today.
Why are we seeing this trend now?
Even though it may look like things are tough for candidates, the job market is on its way up. According to Forbes, “The brighter outlook was due to the decrease in the Consumer Price Index (CPI) and a significant boost to the stock and bond markets. The decline in the CPI and the potential for inflation stabilization led to investors’ optimism.”
March’s job report defied expectations highlighting resilience of the US labor market and providing insight into broader economic trends. While challenges remain, the data points to a strong foundation for continued growth. If you’re looking for a new role, our team of seasoned experts are ready to partner with you. Be sure to check out our jobs page to check out open roles.
