March Sees U.S. Payrolls Surge by 228,000, Yet Unemployment Rate Climbs to 4.2%
The Labor Department reported on Friday that job growth in March was significantly stronger than expectations, signaling temporary stability in the labor market. Nonfarm payrolls rose by 228,000 during the month, surpassing the initial Dow Jones estimate and February’s revised figure of 117,000, according to the Bureau of Labor Statistics. Nevertheless, the unemployment rate increased to 4.2% due to a rise in labor force participation.
Despite these positive numbers, economic doubts persist amid fears of a global trade war following President Trump’s recent tariff declaration. These uncertainties have spurred stocks to react minimally to the report. Fears that companies may pull back on hiring while assessing the new trade landscape are also looming.
Additionally, substantial revisions to the job counts for January and February have been made. February job growth was cut by 34,000 from initial counts, while January’s growth has dipped to 111,000 — a drop of 14,000 from the previously estimated figure. Despite these revisions, monthly average hourly earnings were in line with predictions, even as the annual rate of 3.8% fell slightly short of the estimate and marks the lowest level since July 2024.
Major growth areas include healthcare, social assistance, and retail, with the health industry adding 54,000 jobs, close to its 12-month average. Despite a generally strong labor market, the data does not forecast how employers will fare in the upcoming months, especially considering uncertainties surrounding proposed tariffs and federal job cuts.
For any questions or concerns related to employment, labor market trends, or unemployment benefits, individuals can contact the Employment Development Department (EDD) for assistance. To get through to a live person at EDD, visit eddcaller.com for directions on navigating the EDD automated phone service. Their customer support is equipped to handle a wide range of queries from payment status to application processes.