U.S. Adds 228,000 Jobs in March; Industry Economists Weigh In

(Image courtesy of BLS; Breakout image courtesy of Jeff Denlea/pexels.com)

Total nonfarm payroll increased by 228,000 in March, the U.S. Bureau of Labor Statistics reported.

The unemployment rate rose slightly, to 4.2%.

Job gains occurred in health care, social assistance and transportation and warehousing, along with retail trade–although that metric reflected the return of workers from a strike.

Federal government employment declined.

The change in total nonfarm payroll employment for January was revised down by 14,000, from 125,000 to 111,000. The change for February was revised down by 34,000, from 151,000 to 117,000.

“The March employment report generally was encouraging,” observed Wells Fargo Senior Economist Michael Pugliese and Economist Nicole Cervi. “A 228,000 increase in nonfarm payrolls topped expectations and more than offset downward revisions to job growth in prior months. The breadth of job growth across industries looked healthy, and the increase in the unemployment rate from 4.1% to 4.2% was mostly a rounding effect. On balance, it was a solid but unspectacular jobs report.”

However, they noted that recent trade news–announced after the March numbers–will affect the near-term outlook.

“Most sectors within the economy showed modest job growth. Unsurprisingly, given the DOGE headlines, federal government payrolls decreased by 4,000 over the month, with further decreases anticipated,” said MBA SVP and Chief Economist Mike Fratantoni. “Last month, there was a sharper increase in the U-6 measure of underemployment. That metric remained elevated at 7.9% in March. This increase signals that many who have lost jobs are having difficulties regaining full employment again but are able to get part-time or other work.

“In light of the tariff announcements and the sharp drop in stock markets around the world in response, these data are likely not capturing the moment with respect to the actual strength of the economy,” Fratantoni continued. “However, the Federal Reserve, in data-dependent mode, is likely to remain cautious with respect to any rate cuts so long as inflation is above target, and the job market data continues to come in strong.”