US adds 303K jobs in March, again beating expectations

The U.S. economy added 303,000 jobs in March and the unemployment rate fell slightly to 3.8%, according to new Labor Department figures released Friday.

March employment data again exceeded expectations. Economists had predicted that economic growth would add 200,000 jobs and reduce the unemployment rate to 3.8%.

The latest figures come after months of strong jobs data and the longest unemployment rate below 4% since the late 1960s.

“This report highlights the strength of the job market in the broader context of a U.S. economy that continues to largely resist the effects of rising interest rates,” said Joseph Gaffoglio, president of Mutual of America Capital Management. It highlights this,” he said.

Despite the Federal Reserve’s decision to keep interest rates at 20-year highs in recent months, the labor market has remained surprisingly resilient. Over the past year and a half, the central bank has raised interest rates to their current range of 5.25% to 5.5% in an effort to curb inflation.

Inflation has eased significantly since reaching a 40-year high of 9.1% in June 2022. As of February, consumer prices rose only 3.2% year-on-year. But Fed officials have argued in recent months that they need to see more favorable inflation data before starting to cut rates.

“Going forward, inflation is likely to be sustained given the continued strength of the labor market and inflation sustained above the Fed’s 2% target.” [Fed Chair Jerome] Powell’s cautious approach to monetary easing,” Gaffoglio said.

Despite the positive signs from the economy, President Biden faces an uphill battle on economic issues heading into the November election. Former President Trump, who is considered the likely Republican candidate, continues to increase support among voters regarding the economy.

A recent Wall Street Journal poll of voters in seven battleground states found that 54% said Trump would best handle the economy, compared to 34% for Biden. % were similar.

The survey also found that 56% of voters said the economy had worsened over the past two years, and 74% said inflation was moving in the wrong direction.

Updated at 9:18 a.m. ET