Job growth accelerated sharply in March, greatly surpassing analysts’ expectations, while the unemployment rate saw a modest uptick.
According to Friday’s employment report from the Bureau of Labor Statistics (BLS), the U.S. economy added 228,000 jobs in March, compared to 117,000 in February, which was revised down from an initial estimate of 151,000.
The reading significantly exceeds the consensus forecast of analysts, compiled by Trading Economics, who had anticipated only 135,000 jobs being added in March.
Meanwhile, the unemployment rate edged up to 4.2 percent from 4.1 percent.
Why It Matters
The stronger-than-expected results will likely be viewed by the administration as evidence that Trump’s economic policies are already starting to deliver results, while alleviating concerns that the U.S. labor market might already be suffering under his agenda.
Economists have told Newsweek previously that a softening of labor market conditions, combined with weak levels of consumer confidence and wider uncertainty gripping the business community as a result of President Trump’s tariffs, could contribute to fears of a recession in 2025.
U.S. President Donald Trump gestures while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC.
Andrew Harnik/Getty Images
As well as the growing list of tariffs introduced by Trump, other administration actions that could soon impact the U.S. labor market include the president’s deportation plans, and the actions taken by the Department of Government Efficiency (DOGE) to trim the size of federal workforce.
What To Know
According to Friday’s report, job gains were recorded in health care, social assistance, transportation and warehousing, as well as retail trade.
The 228,000 jobs added in March, the strongest reading in three months, compares to the monthly averages of 168,000 in 2024, 216,000 in 2023, 380,000 in 2022, and a record 603,000 in 2021, when the economy rebounded sharply from the pandemic lockdowns, AP reported.
According to the BLS, federal government employment declined by 4,000 in March, following a loss of 11,000 jobs in February.
Court orders blocking the DOGE-driven dismissal of thousands of federal workers may have prevented the department’s actions from being fully captured in Friday’s data, Trading Economics noted prior to the release.
Elon Musk looks on during a cabinet meeting hosted by US President Donald Trump in the Cabinet Room of the White House on March 24, 2025, in Washington, DC.
Brendan Smiakowski/AFP via Getty Images
Government layoffs are expected to weigh on future jobs reports, given BLS data typically lags behind real-time employment trends, and given staggering recent reports on the actions taken by DOGE.
According to outplacement firm Challenger, Gray & Christmas, U.S. employers announced 275,240 jobs cuts in March, up 60 percent from February and marking the third-highest monthly total since the firm’s records began in 1989. More job cuts were announced only in April and May of 2020—671,129 and 397,016, respectively—during the early stages of the COVID-19 Pandemic.
Challenger, Gray & Christmas said the figures were primarily due to DOGE-related layoffs, as well as contract cancellations implemented by the department.
What People Are Saying
White House Press Secretary Karoline Leavitt, in response to the report, said: “The economy is starting to roar with a strong 228,000 jobs added in the month of March — well ahead of the market’s expectation. There was also a sharp increase in transportation, construction, and warehousing employment. The President’s push to onshore jobs here in the United States is working. The Golden Age of America is on its way!”
Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report, told Newsweek: “The March monthly jobs report came in much higher than forecast at 228K vs 140K Bloomberg consensus forecast. On the surface, this appears to be a bullish number, but it is important to understand that this is backwards looking data.
“Markets are going to be much more concerned with incoming, future data, and our concern here is that the higher-than-expected tariffs are going to lead to a major slowdown in hiring and the labor market.”
Morgan Stanley chief US economist Michael Gapen, in a note prior to the release, cited by Yahoo Finance, said: “It would take a lot of employment growth to alleviate fears of a sharper slowdown in the economy, while a mildly below-consensus print could fuel those concerns.”
Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, in comments shared with Newsweek following the release, said: “Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession.”
“There is still time for cooler heads to prevail and back off from the brink, but the current path is toward lower economic growth and an increased risk of recession,” he added.
Andrew Challenger, Senior Vice President and workplace expert for Challenger, Gray & Christmas, said: “Job cut announcements were dominated last month by Department of Government Efficiency [DOGE] plans to eliminate positions in the federal government. It would have otherwise been a fairly quiet month for layoffs.”
Peter Simon, professor of economics at Northeastern University, told Newsweek that President Trump’s tariffs were are expected to affect the U.S. labor market, with broader job losses due to an anticipated increase in inflation.
“Some jobs might be saved, maybe a few car companies will be saved,” Simon said, “but other jobs are going to be lost because we’re going to be paying more for everything.”
Lana Payne, national president of the Canadian union Unifor, told Newsweek that the tariffs announced by Trump on Wednesday and those already in place would result in job losses in Canada and the U.S., particularly in the autos sector.
“American workers are going to feel the brunt of this too,” she said.
What Happens Next?
The next jobs report for the month of April is scheduled for release on Friday, May 2