US employment slowed in March – however the labor market stays historically tight, which could put pressure on a weakened Federal Reserve to proceed with one other rate hike.
Non-farm jobs rose by 236,000 last month, in accordance with the closely watched March Labor Department report published on Friday.
This number was roughly in line with expectations. Ahead of the March jobs report, economists polled by Dow Jones had forecast employment growth of 238,000.
The US unemployment rate fell barely to simply 3.5%, down from 3.6% in February.
“Employment continued to grow in leisure and hospitality, government, skilled and business services and healthcare,” the Bureau of Labor Statistics said.
The typical hourly wage rose by 0.3%, barely greater than economists expected. Wages have grown by just 4.2% in the last 12 months – the slowest since mid-2021.
Elsewhere, February employment was revised up to indicate the US economy added as many as 326,000 jobs – 15,000 greater than previously reported.
Investors were anxiously awaiting the newest employment data, given the lingering uncertainty in regards to the Fed’s policy path. Fed Chairman Jerome Powell has often cited labor market tensions because the central bank introduced a series of rate of interest hikes over the past 12 months.
“The job market is cooling, though not as fast because the Fed would really like,” Derek Tang, an economist at LH Meyer/Monetary Policy Analytics in Washington, D.C. he told Bloomberg. “This keeps the May hike in play, albeit barely.”
![Work report](https://nypost.com/wp-content/uploads/sites/2/2023/04/NYPICHPDPICT000009326824.jpg?w=1024)
![Work report](https://nypost.com/wp-content/uploads/sites/2/2023/04/NYPICHPDPICT000009326825.jpg?w=1024)
In response to CME Group’s FedWatch tool, the market is pricing in a 69% probability that the Fed will raise rates of interest again by 1 / 4 of a percentage point at its next meeting on May 2-3. Investors see only a 31% probability that the Fed will halt its monetary policy tightening campaign.
Last month, the Fed raised the rate of interest by 1 / 4 point, signaling its determination to contain inflation despite the weakness of the US banking sector. Inflation stays abnormally high, with prices up 6% year-on-year in February, in accordance with last month’s Consumer Price Index.
Powell and other experts have suggested that the banking crisis could lead on to tighter credit conditions, pushing prices down even further.
![Work report](https://nypost.com/wp-content/uploads/sites/2/2023/04/NYPICHPDPICT000009326833.jpg?w=1024)
US stock futures were mixed because the market digested the March jobs report. Dow Jones Industrial Average futures fell around 55 points, while Nasdaq and S&P 500 futures were flat.
Hiring remained resilient at the same time as large US firms cut jobs and introduced cost-cutting measures amid signs of an economic slowdown.
Disney launched the primary of three planned rounds of layoffs in late March as a part of plans to chop about 7,000 jobs and $5.5 billion in spending.