Nonfarm payrolls increased by 303,000 jobs last month, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report Friday.
Data for February was revised slightly lower to show 270,000 jobs added instead of 275,000 as previously reported.
U.S. employers hired far more workers than expected March while raising wages, suggesting the economy ended the first quarter on solid ground and potentially delaying anticipated interest rate cuts from the Federal Reserve this year.
A forecast of 212,000 jobs which is a decrease from over 270,000 from last months data was baed in mind.
Household balance sheets are mostly healthy, helping to support consumer spending. The labor market has also benefited from a rise in immigration over the past year. Easing financial conditions are boosting hiring in interest rate-sensitive industries like construction, which should provide a base for job growth even as payroll gains are expected to slow.
Average hourly earnings rose 0.3% in March after gaining 0.2% in the prior month as some weather-related distortions faded. The annual increase in wages slowed to a still high 4.1% in March from 4.3% in February. Wage growth in a 3%-3.5% range is seen as consistent with the Fed’s 2% inflation target.
The economy is outshining its global peers, despite 525 basis points worth of rate hikes from the U.S. central bank since March 2022 to quell inflation. Economists say most businesses locked in lower borrowing costs prior to the Fed’s tightening cycle, providing some insulation from higher rates and allowing them to keep their workers.
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