The U.S. economy created 236,000 new jobs in March, which was a few thousand short of what was predicted by experts. The unemployment rate decreased from 3.6% to 3.5%, returning it to pre-pandemic levels.
The U.S. economy added 472,000 jobs in January (a figure initially reported as 517,000 but eventually adjusted downward). The unemployment rate hit a 54-year low of 3.4% that month. (To be clear, the unemployment rate represents the number of people who would like to work but are currently not in the labor force. It does not consider people who choose not to work (such as pensioners or students).
The economy created 326,000 new jobs in February. Although March’s employment growth was significant, it paled in comparison to January and February’s numbers. The 236,000 jobs added in March are the fewest in a month since December 2020, when the economy actually contracted.
Glassdoor’s chief economist, Daniel Zhao, said in a statement, “The labor market in March came in like a lion with a banking crisis and more layoffs, and is going out like a lamb with a decent jobs report.” The labor market is still robust, but it is gradually settling back to Earth.
What s expected in job market after that
A healthy jobs report is often interpreted as evidence of a steady economy. Stock market volatility and anxiety among economists have increased in recent months as a result of positive employment data.
Why is that? The Federal Reserve remains committed to combating inflation through interest rate hikes, which are still a serious burden for consumers. Yet, the Federal Reserve may ease off on interest rate hikes and provide some assistance to borrowers in need due to the less-than-impressive March jobs figures compared to January and February.
Recession worries among consumers and financial experts have been building since the middle of 2022, so a pause in rate hikes should help ease those concerns. It is possible that aggressive interest rate hikes could cause a major reduction in consumer expenditure, which in turn could spark a general economic downturn. Reducing the pace of interest rate hikes by the Federal Reserve could help the economy avoid a recession in 2023.
Even though employment growth slowed in March, that should not add to worries of a recession. Although March’s job growth was far lower than January and February’s, the United States economy added an average of 183,000 new jobs per month from 2010 to 2019. So, the labor market is secure and stable with the addition of 236,000 employment.
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