The US added 228,000 jobs in March, showing a resilient labor market as President Trump’s trade wars with the rest of the world intensified. The unemployment rate rose to 4.2%, but economists attribute this to an increase in people entering the labor force rather than a decrease in job seekers.
The hiring numbers were higher than expected, up from February’s 117,000 jobs and nearly double economists’ forecasts. Labor Department revisions shaved 48,000 jobs off January and February payrolls. Average hourly earnings rose 0.3% from February, with a year-over-year gain of 3.8%.
Healthcare companies added 54,000 jobs, while restaurants and bars added nearly 30,000. The federal government lost 4,000 jobs, but this may be a sign that Elon Musk’s purge of the federal workforce is only starting to show in the data.
Economists warn that the jobs numbers provide a rearview mirror look at the economy and are worried about damage from Trump’s policies, including sweeping import taxes. Financial markets have been reeling due to his trade wars, with the Dow Jones index plummeting 1,000 points on Friday after China announced retaliatory tariffs.
“This could be the high water mark as we go into spring,” said Diane Swonk, chief economist at KPMG. Economic uncertainty remains high, and economists are concerned about how the trade war will escalate and impact markets. Other economic threats come from Trump’s firings of federal workers and promises to deport millions of immigrants working in the US illegally.
The job market has cooled since the red-hot hiring days of 2021-2023, but the labor market remains robust. Employers added jobs in healthcare and restaurants, while construction and hospitality firms still need entry-level workers. Business owners are hesitant to add staff due to economic uncertainty, with some buying goods in advance to mitigate potential tariffs.
“The uncertainty is what’s killing us,” said Alex Clark, co-founder of Fort Hamilton Distillery. He has been tying up cash flow to prepare for potential tariffs, which may limit his ability to expand his payroll. Other business owners, such as Jessica Bettencourt of Klem’s store, are also pausing hiring due to concerns about price increases and volatility in the global supply chain.
Source: https://apnews.com/article/jobs-economy-unemployment-inflation-federal-reserve-trump-d43b08bda57cb5d90b5bac1f092e1f3d