WASHINGTON: Employers in the United States continue to hire at a rapid pace in March, lowering the unemployment rate to 3.5% and predicting labour market resiliency that would put the Federal Reserve on track to hike interest rates again next month.
On Friday, the Labor Department’s carefully watched employment report revealed that annual pay rises slowed but remained too strong to be compatible with the US central bank’s 2% inflation objective. The announcement concluded a week dominated by statistics, including increased adjustments to weekly state unemployment and continuing claims, which signalled that labour market conditions were improving, Reuters said.
Labor market tightness is attracting more individuals into the labour field, with 480,000 new entrants last month, which may assist to limit wage increases further. Black unemployment has reached an all-time low of 5.0%.
“Rather than an abrupt and jarring end to the jobs party of the last couple of years, the nation’s job market is gradually turning the lights back on and the music down in a mostly smooth transition from weekend to weekday that looks, for the time being, to be largely sustainable and healthy,” said Nick Bunker, head of economic research at Indeed Hiring Lab.
According to the establishment survey, nonfarm payrolls climbed by 236,000 jobs last month. The number of jobs added in February was raised up to 326,000 from 311,000 previously reported. In the first quarter, job growth averaged 345,000 a month, more than double the rate required to keep up with increase in the working-age population.
Part of the hiring slowdown reflected the fading effects of abnormally mild weather in January and February.
Reuters polled economists, who predicted a 239,000 increase in payrolls. Figures varied between 150,000 and 342,000.
The leisure and hospitality business added 72,000 jobs, with the majority of those roles being in restaurants and bars. The leisure and hospitality sector is still 368,000 employees below its pre-pandemic level.
During the pandemic’s recovery, restaurants and bars have been the primary drivers of job development.
Government employment has grown by 47,000 people. Government employment is 314,000 jobs lower than it was in February 2020. Hiring in professional and commercial services, as well as healthcare, transportation, and warehousing, increased.
Part of the hiring slowdown reflected the fading effects of abnormally mild weather in January and February.
Reuters polled economists, who predicted a 239,000 increase in payrolls. Figures varied between 150,000 and 342,000.
The leisure and hospitality business added 72,000 jobs, with the majority of those roles being in restaurants and bars. The leisure and hospitality sector is still 368,000 employees below its pre-pandemic level.
During the pandemic’s recovery, restaurants and bars have been the primary drivers of job development.
