The U.S. economy added 228,000 jobs in March, while the unemployment rate inched up to 4.2%, according to the Labor Department’s report on Friday.
Why It Matters
The strong hiring numbers indicate that, as of last month, the labor market remained robust—even as President Trump escalated tariffs. However, job gains for January and February were revised downward by a combined 48,000 positions, slightly tempering the overall strength of recent employment trends.
Key Details
- March job gains were the highest recorded in 2025 so far, surpassing analysts’ expectations of 140,000 new jobs.
- The full impact of layoffs in DOGE-related industries has yet to be fully reflected in the data.
- Employment in the federal government declined by 4,000 jobs in March, following a loss of 11,000 in February. However, the Labor Department clarified that employees on paid leave or receiving severance are still counted as employed.
- Average hourly earnings, a key measure of wage growth, rose by 0.3% last month.
- Over the past year, private-sector wages have increased by 3.8%, slightly slowing from February’s 4% year-over-year gain.
What They’re Saying
“GREAT JOB NUMBERS, FAR BETTER THAN EXPECTED. IT’S ALREADY WORKING,” Trump wrote on Truth Social following the report’s release.
The Bigger Picture
The monthly jobs report provides the most comprehensive snapshot of the labor market, particularly as business and consumer sentiment surveys suggest growing economic uncertainty. The Federal Reserve is closely monitoring employment data for signals on how the administration’s trade policies are affecting the economy.
Federal Reserve Chair Jerome Powell is scheduled to speak at 11:25 a.m. ET on Friday—his first public remarks since Trump intensified tariff measures earlier this week. His comments could provide further insight into how the Fed plans to respond to shifting economic conditions.
The Bottom Line
Despite concerns over the economic impact of escalating trade tensions, the labor market remained solid in March, defying expectations of a slowdown. However, Wall Street economists have begun lowering their growth forecasts while raising inflation projections for 2025 in response to Trump’s reciprocal tariffs. The coming months will reveal whether the strength of the labor market can withstand the mounting pressures of trade policy changes.