The U.S. economy added 303,000 jobs in March, with significant gains in the health care, government, and construction sectors.
The U.S. economy witnessed a substantial boost in employment in March, with nonfarm payrolls increasing by 303,000, according to the latest report from the Bureau of Labor Statistics.
The healthcare, government, and construction sectors observed the most significant job gains. Despite this growth, the unemployment rate remained relatively stable at 3.8%, maintaining its narrow range between 3.7% and 3.9% since August 2023.
The healthcare sector emerged as a critical driver of employment growth, adding 72,000 jobs, which surpassed the average monthly gain over the past year. Government employment also saw a significant increase of 71,000, with both local and federal government positions contributing to this expansion. Additionally, the construction sector experienced a notable surge in employment, with 39,000 new jobs added, nearly doubling the average monthly gain from the previous year.
Average Hourly Earnings for All Employees Rose by $0.12
In terms of earnings and workweek, the average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents to $34.69, while the average workweek for all employees increased slightly by 0.1 hours to 34.4 hours.
However, the unemployment rates among different demographics showed mixed results, with Blacks increasing to 6.4%, while rates for Asians and Hispanics decreased to 2.5% and 4.5%, respectively. The number of long-term unemployed individuals remained steady at 1.2 million, constituting 19.5% of all unemployed persons.
Immediate Impact on Markets
The release of the employment report had a notable impact on financial markets. Major stock indexes, including the Dow Jones Industrial Average (DJIA), NASDAQ, and S&P 500, experienced declines following the announcement.
The DJIA fell by 530.16 points, while the NASDAQ and S&P 500 dropped by 228.38 and 64.28 points, respectively.
Commodities such as gold and oil saw slight decreases, and the U.S. 10-year Treasury yield increased by 0.052, possibly reflecting market adjustments in response to the employment data.
The EUR/USD exchange rate saw a minor decrease, and the VIX, a measure of market volatility, increased by 0.18 points, suggesting heightened investor uncertainty in the immediate aftermath of the report’s release.
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Originally Posted April 5, 2024 – U.S. Economy Added 303k Jobs in March, More than Expected
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