The United States added more than projected 303,000 new jobs in March, indicating that the economy is still developing at a steady clip, but the result will make it difficult for the Federal Reserve to decide whether to lower interest rates.
The growth in new positions was the most since May 2023.
The Wall Street Journal surveyed economists last month, and they predicted a 200,000 boost in new jobs.
Meanwhile, the jobless rate fell to 3.8%, down from 3.9%.
Before cutting interest rates, senior Fed officials have emphasized that they want to see the labor market calm off a little more and inflation slow closer to their 2% target. A weaker labor market can assist combat inflation.
Last month’s job growth was up from a revised 270,000 in February and was far above the 200,000 jobs that economists had forecast. By any measure, it amounted to a major burst of hiring, and it reflected the economy’s ability to withstand the pressure of high borrowing costs resulting from the Federal Reserve’s interest rate hikes.
With the nation’s consumers continuing to spend, many employers have kept hiring to meet steady customer demand.
Friday’s report from the Labor Department also showed that the unemployment rate dipped from 3.9% to 3.8%. The jobless rate has now come in below 4% for 26 straight months, the longest such streak since the 1960s. The government also revised up its estimate of job growth in January and February by a combined 22,000.
