US Adds 1.78 Lakh Jobs In March, Unexpected Growth Lowers Unemployment To 4.3%

The US economy saw stronger-than-expected job growth in March, government figures released on Friday showed, offering potential relief to concerns about the labour market and supporting US President Donald Trump’s economic policies.

The country added 178,000 jobs in March, reversing February’s loss of 133,000 positions, and the unemployment rate fell by 0.1 percentage point to 4.3 percent, according to the US Labor Department.

The March figures surpassed analyst predictions, with economists surveyed by Dow Jones Newswires and the Wall Street Journal forecasting a gain of just 59,000 jobs.

Much of the increase came from the health care sector, which added 76,000 jobs in March after losing positions the previous month, partly due to strike actions.

Construction also saw growth, adding 26,000 jobs, though the sector remained largely unchanged compared with a year ago.

Federal government employment continued to decline, falling 11.8 percent since October 2024, reflecting Trump’s cost-cutting measures and efforts to reduce government size.

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The March report also included revisions to January and February, showing that employment for those months combined was 7,000 lower than previously reported.

Before the data release, analysts had expected more modest job gains. Nancy Vanden Houten, lead economist at Oxford Economics, said the report showed solid growth in headline nonfarm payrolls but may not ease concerns among Federal Reserve officials, given vulnerabilities caused by the US-Israel war with Iran.

The conflict in the Middle East has pushed oil prices higher and disrupted supply chains, sparking worries of a global economic slowdown, including in the US. The Federal Reserve has taken a cautious stance on interest rates amid this uncertainty.

While overall unemployment has stayed relatively steady, analysts note that underlying challenges remain, as weak job growth has been accompanied by a drop in labour supply, largely due to Trump’s immigration restrictions and deportation efforts.

The March jobs report is likely to be seen as a win for Trump, who has hailed his economic policies as a key achievement despite trade tensions and global uncertainties affecting businesses.

(With inputs from AFP)