On Friday, the Labor Department reported job growth in March that was far from the upwardly revised figure for February of 326,000.
US job growth reached 236,000 for the month of March amid signs of a slowdown in the labor market. That number puts the Labor Department’s payroll growth on Friday a report Close to the Dow Jones estimate for March of 238,000. However, the total job growth of 236,000 sits significantly below the upwardly revised figure for February of 326,000.
The March job growth report revealed that the unemployment rate fell to 3.5% compared to the expected 3.6% threshold. This decline in non-farm payrolls occurred even though labor force participation increased to its highest level since before Covid began.
Although the March non-farm payroll report was close to what analysts expected, it still marked the lowest monthly gain since December 2020. On top of that, the 236,000 job growth came as the Federal Reserve sought to slow labor demand to curb demand. rein in inflation.
The payroll gains in March were accompanied by a 0.3% rise in average hourly earnings. Although this increase raised the overall 12-month increase to 4.2%, it still marked the lowest level since June 2021. In addition, the average workweek fell to just over 34 hours.
March career growth sector breakdown
Friday’s non-farm payroll saw leisure and hospitality lead all sectors reported with growth of 72,000 jobs. However, the number of registered jobs still pales in comparison to the pace of 95,000 over the past six months.
Health care and social assistance was the second highest sector, with growth of more than 50,000 jobs, while government was in third place, with 47,000 jobs. Rounding out the top five sectors are professional and commercial services, transportation and warehousing. The former recorded growth of 39,000, while the latter saw an employment increase of less than 10,000 jobs in March.
On the contrary, the retail sector reached its lowest levels among the reported sectors, losing nearly 15,000 jobs. Other failing sectors include construction, which posted a loss of 9,000, and manufacturing and financial activities, with 1,000 jobs each.
Earlier this week, companies reported that layoffs were up nearly 400% year-over-year in March. In addition, there was an increase in unemployment claims, with the Labor Department reporting a 10 million job decline in February.
The Fed raised the benchmark borrowing rate by 4.75% amid an unprecedentedly tight labor market. This week, several officials from the main bank expressed their unwavering commitment to controlling inflation. However, markets remain on edge amid rising interest rates, with at least one hike likely to occur in May.
Raise federal interest rates
Investors’ ongoing concern is that the Federal Reserve’s continued rate hikes could hurt the economy and lead to a recession. Late last month, the US central bank raised interest rates by 25 basis points despite a banking crisis triggered by a Silicon Valley bank.
However, BlackRock’s chief investment officer, Rick Rider, is fully supportive of the increases, suggesting an agenda for a rate hike in early March. As Reeder said at the time:
“We think there is a reasonable chance that the Fed will have to raise the federal funds rate to 6% and then maintain it for an extended period to slow the economy and bring inflation down to close to 2%.”
According to the CEO of BlackRock, embarking on further hikes is the only way to manage the current economic situation.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
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