The US economy has shown a robust growth in March, adding a staggering 303,000 jobs, surpassing economists’ expectations and signaling continued economic strength.
The Bureau of Labor Statistics reported the significant increase, matching the largest one-month boost since May 2023. This figure marks a notable rise from the 270,000 jobs added in February and the 256,000 in January, surpassing economists’ forecast of 200,000 jobs for March.
The unemployment rate concurrently dipped slightly to 3.8%, while wage growth stood at 4.1% over the past 12 months. Sectors experiencing notable job gains included hospitals, restaurants, local governments, large warehouse retailers, and specialty trade contractors, with manufacturing showing no net job additions.
Healthcare led the job increases, adding 72,000 jobs in March, while government employment and construction also experienced notable gains, adding 71,000 and 39,000 jobs, respectively.
The robust data suggests a potential delay in Federal Reserve plans for interest rate cuts, with traders now shifting the odds of the first rate cut of 2024 from June to September. By keeping interest rates higher, the central bank aims to moderate consumption to prevent inflationary pressures.
The unexpected surge in job creation underscores the resilience of the US economy is preventing an imminent recession.
Story by Fiagbe Zenas
Source : Bloomberg Business, CNN
