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US Hiring Rises In March, Unemployment Rate Ticks Lower: Govt
By AFP - Agence France Presse
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US hiring rose much more than expected last month, according to government data published Friday, keeping up the pressure on the Federal Reserve as it weighs when to start cutting interest rates.
The world's largest economy added 303,000 jobs in March, up from a revised 270,000 new jobs created a month earlier, the Department of Labor announced.
This was far above the market expectations of an increase of 200,000, according to Briefing.com.
The unemployment rate ticked lower to 3.8 percent from 3.9 percent in February, in line with expectations.
"Payroll growth was shockingly strong in March," High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients.
"The labor market remains strong, and the economy continues to create jobs at a fast rate," she added.
Policymakers at the Fed have been debating when will be the right time to begin lowering interest rates, as they look to return inflation firmly to their long-term target of two percent without damaging the buoyant US economy.
Inflation fell sharply last year, while the economy and jobs markets have remained resilient. But it has edged higher since the start of the year, causing some policymakers to delay their expectations for the start of cuts.
Wage growth increased 0.3 percent on a monthly basis, while average hourly earnings were up 4.1 percent from a year earlier, Labor Department figures showed.
The consistently strong jobs data has created a challenge for president Joe Biden, who wants to highlight the strength of the US economy ahead of November's presidential election.
If inflation remains above target, stronger jobs and growth data will likely keep the Fed on pause for longer, pushing up the cost of borrowing for consumers and producers.
This makes it harder for consumers looking to purchase a home, or to repay credit card debts, and makes it more expensive for companies to invest for the future.
At its March interest rate meeting, Fed policymakers penciled in three cuts this year, although some have since suggested they would prefer to see less cuts due to the uptick in inflation.
