Employers across the U.S. added 228,000 jobs in March, pointing to a labor market that remains resilient despite economic headwinds from President Trump’s tariffs and sticky inflation.
The numbers
Economists expected that employers had hired 130,000 people last month, according to financial data firm FactSet. That compares with a revised 117,000 additions in February, according to financial data firm FactSet.
The unemployment rate rose slightly to 4.2%, versus 4.1% in February.
What it means
While the March numbers beat forecasts, economists are also cautioning that Mr. Trump’s new tariffs, announced on April 2, could crimp economic growth, raising the risk of a recession. Economic downturns like recessions are typically accompanied by a sharp increase in unemployment.
“Today’s better-than-expected jobs report will help ease fears of an immediate softening in the U.S. labor market. However, this number has become a side dish with the market just focusing on the entrée: tariffs,” said Lindsay Rosner, head of multisector fixed income investing at Goldman Sachs Asset Management, in an email.
What experts say
The labor market’s strength may provide an additional reason for the Federal Reserve to hold off on cutting rates anytime soon, said Joe Gaffoglio, CEO of Mutual Of America Capital Management.
“The solid March jobs report highlights an economy that remains resilient despite sticky inflation, a drop in consumer confidence and uncertainty surrounding the impacts from recently introduced tariffs,” Gaffoglio added.
Still, the number reflects “a moment of calm before the storm hits,” said Seema Shah, chief global strategist at Principal Asset Management.
“The market needed today’s number. Everyone knows that economic weakness is coming, but at least we can be reassured that the labor market was robust coming into this policy-driven shock and therefore, the slowdown should not be overly steep,” Shah said.
She added, “Next month is when hard data is likely to start showing signs of what soft data has already been signalling.”