U.S. employers reported adding 178,000 jobs in March, much more than expected, and the unemployment rate dipped to 4.3%, according to the latest employment report from the U.S. Bureau of Labor Statistics.
The figure represents above-trend job growth for a labor market that created virtually no jobs over the past year. Without the health care sector, there would have been a net loss of more than half a million jobs in 2025. Health care employers added 76,000 jobs last month.
Immigration restrictions, higher energy prices, and economic and geopolitical uncertainty have impacted business confidence and hiring plans, resulting in a generally frozen labor market. Separate BLS data shows that the hiring rate fell to its lowest level since the COVID recession in 2020. Many economists anticipate a constrained labor market throughout the year, with selective hiring, compressed wage growth, and workforce resizing as labor supply remains tight.
Check back here later today for more analysis from labor market experts.
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