The U.S. economy demonstrated its resilience in March, with employers adding a robust 303,000 jobs, outpacing economists' expectations. The unemployment rate remained relatively stable at 3.8%, signaling a tight labor market that continues to favor workers.
Health care, government, and construction sectors led the charge in job creation this past month. Health care employment surged by 72,000, with strong gains in ambulatory services, hospitals, and nursing facilities. This growth surpassed the industry's average monthly increase of 60,000 over the past year, highlighting the ongoing demand for health services.
Government jobs also saw a significant uptick, adding 71,000 positions in March. Local governments accounted for the lion's share of these gains, with federal government employment also contributing to the increase. This growth outpaced the sector's average monthly gain of 54,000 over the previous 12 months.
Construction jobs nearly doubled their average monthly growth, adding 39,000 positions in March compared to the 19,000 per month seen in the past year. Nonresidential specialty trade contractors drove much of this increase, pointing to a potential rebound in commercial building activity.
The leisure and hospitality industry, one of the hardest hit during the pandemic, continued its recovery. The sector added 49,000 jobs in March, marking a full return to its pre-pandemic employment levels from February 2020. This recovery has been a long time coming for an industry that has faced numerous challenges over the past few years.
Other bright spots in the report included the other services industry, which maintained its upward trajectory, and social assistance, which continued to trend up despite a slower pace than its average over the past year.
Wage growth remained steady, with average hourly earnings increasing by 12 cents, or 0.3%, to $34.69. Over the past 12 months, average hourly earnings have risen by 4.1%, outpacing inflation and providing a boost to workers' purchasing power.
Despite these gains, some industries showed little change in employment, including mining, manufacturing, wholesale trade, transportation, information, financial activities, and professional and business services. Additionally, while the retail trade sector added 18,000 jobs overall, some sub-industries like building material and garden supply stores experienced job losses.
Overall, the March jobs report paints a picture of a strong and resilient economy that continues to create opportunities for workers across a wide range of industries. As the U.S. moves further away from the economic disruptions of the pandemic, the labor market appears poised to maintain its momentum in the months ahead. However, policymakers and economists will be keeping a close eye on inflation and other potential headwinds that could impact the economy's trajectory.