WASHINGTON, D.C. — The U.S. economy added 178,000 jobs in March, beating expectations, but underlying data shows uneven growth and signs of strain in parts of the labor market.
What This Means for You
- Job growth exceeded forecasts, but gains were uneven across industries
- Unemployment edged down slightly to 4.3 percent
- Long-term unemployment and discouraged workers are increasing
The U.S. Bureau of Labor Statistics reported stronger-than-expected job gains in March, following a sharp decline in February that was revised lower.
The unemployment rate fell to 4.3 percent from 4.4 percent, with 7.2 million people unemployed.
Job Growth Concentrated in Key Sectors
Most of March’s job gains were concentrated in a small number of industries.
Health care led growth with 76,000 new jobs, including about 35,000 workers returning after a physicians’ office strike. Construction added 26,000 jobs, while transportation and warehousing grew by 21,000, largely driven by courier services.
Other sectors saw declines. Financial activities lost 15,000 jobs, and government employment fell by 8,000, including a loss of 18,000 federal positions. Federal employment has declined by more than 11 percent since its peak in late 2024.
Labor Force Participation Remains Flat
The labor force participation rate — the share of people working or actively looking for work — remained at 61.9 percent. The employment-population ratio also held steady at 59.2 percent.
Wages and Hours Show Limited Movement
Average hourly earnings increased by 9 cents to $37.38 in March, a 0.2 percent monthly gain. Over the past year, wages have risen 3.5 percent.
The average workweek declined slightly to 34.2 hours. In manufacturing, the average workweek remained at 40.2 hours.
Long-Term Unemployment and Workforce Concerns
Analysts pointed to growing long-term unemployment as a concern.
About 25.4 percent of unemployed individuals — or 1.8 million people — have been out of work for 27 weeks or longer. That figure has increased by 322,000 over the past year.
The number of discouraged workers — those who have stopped looking for work because they believe no jobs are available — rose by 144,000 to 510,000.
Revisions and Broader Trends
January job gains were revised upward to 160,000, while February losses were revised deeper to 133,000. Combined, employment for the first two months of the year was 7,000 lower than previously estimated.
Analysts described the labor market as stabilizing but uneven, with hiring concentrated in select industries and limited movement elsewhere.
Administration Response
Labor Secretary Lori Chavez-DeRemer said the report reflects broader economic momentum.
“Job growth smashed expectations, with a remarkable 178,000 jobs added in March,” Chavez-DeRemer said.
She credited federal economic policies with supporting job creation, wage growth, and increased private-sector investment.
Officials said the labor market continues to adjust following recent volatility, with mixed signals across industries and workforce participation.
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