US hiring slows again in March as employers add 236,000 workers
US hiring SLOWS again in March as employers add 236,000 workers – but unemployment rate falls to 3.5%
- US job creation slowed again last month, with 236,000 new jobs added
- But the unemployment rate ticked back to a near-historic low of 3.5%
- A weaker labor market could reduce inflation, but increases the risk of a recession
US job creation slowed again last month, a shift that could help reduce inflation, but another sign was that the labor market is starting to weaken.
Employment rose by 236,000 jobs in March, slightly less than economists had forecast, and down from the hefty 311,000 new jobs created in February.
However, the unemployment rate fell to a near-historic low of 3.5 percent, down from 3.6 percent in February, according to Friday’s labor situation report.
The employment rate, a key measure of the number of eligible workers employed or seeking work, has risen to 62.6 percent, a level not seen since the pandemic hit in March 2020.
Markets were closed for Good Friday, but Dow futures rose slightly after the new jobs report.
US job creation slowed again last month, with employers adding 236,000 workers
Hiring was surprisingly robust in both January and February, confusing forecasters. The unemployment rate is barely above its half-century low.
“We are still in a tight labor market, one that favors workers,” said Dave Gilbertson, vice president of payroll management company UKG. “But looking ahead, the Goldilocks job market is at some risk. After two overheated months we are starting to see more and more signs of cooling down.’
If other signs follow this week that the US job market has begun to cool after being red-hot during the post-pandemic recovery.
The Labor Department reported Tuesday that the number of job openings fell below 10 million at the end of February for the first time in nearly two years, with notable declines in health care and professional services, including management and tech jobs.
And a report on Thursday from outplacement firm Challenger, Gray & Christmas showed that the number of layoffs announced by U.S. employers surged in the first quarter.
From January to March, companies announced 270,416 job cuts, a 396 percent increase from the same period last year. Layoffs in the technology sector accounted for 38% of job losses in the quarter.
Developing story, more to follow.