The U.S. unemployment rate rose to 4.2% in March, the highest since November and slightly above expectations of 4.1%. The number of unemployed individuals increased by 31,000 to 7.08 million, while employment rose by 201,000 to 163.51 million.
US jobless rate rises to 4.2% in March
The labor force participation rate edged up to 62.5% from 62.4%, while the employment-population ratio held steady at 59.9%. Meanwhile, the broader U-6 unemployment rate—which includes those marginally attached to the labor force and part-time workers for economic reasons—ticked down to 7.9% from 8.0% in February.
Wages in line with expectations
Average hourly earnings for all U.S. private nonfarm employees rose by 9 cents, or 0.3%, to $36.00 in March, matching market forecasts. This follows a downwardly revised 0.2% increase in February. For production and nonsupervisory employees, wages increased by 5 cents, or 0.2%, to $30.96. On a year-over-year basis, average hourly earnings grew by 3.8%, slightly below the expected 3.9% and February’s 4.0% annual increase.
Hiring surpasses forecasts
The U.S. economy added 228,000 jobs in March, far surpassing forecasts of 135,000 and marking the strongest gain in three months. February’s figure was revised down to 117,000. Job growth was led by health care (+54K), social assistance (+24K), and transportation and warehousing (+23K). Retail trade employment also rose by 24,000, partly reflecting the return of workers following a strike. On the other hand, federal government jobs fell by 4,000, after an 11,000-job decline in February. Employment in other key industries—including manufacturing, construction, financial services, and hospitality—showed little change. Revisions to January and February data revealed a combined 48,000 fewer jobs than previously reported.
