US Nonfarm Payroll Increases by 228,000 in March; Unemployment Ticks Up to 4.2%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 228,000 in March, higher than the average monthly gain of 158,000 over the prior 12 months.

Notable growth occurred in the following sectors:

• Health care added 54,000 jobs in March, consistent with the average monthly gain of 52,000 over the past 12 months.
• Social assistance employment rose by 24,000, outpacing the 12-month average of 19,000.
• Retail trade added 24,000 jobs, largely due to the return of workers from a strike, which contributed to a gain of 21,000 jobs in food and beverage stores. General merchandise retailers, however, lost 5,000 jobs. Overall, retail trade employment has changed little over the year.
• Transportation and warehousing continued its upward trend, adding 23,000 jobs—nearly double the 12-month average increase of 12,000.
• Federal government employment declined by 4,000 jobs in March, following an 11,000-job loss in February. The BLS notes that employees on paid leave or receiving severance pay are still counted as employed in the establishment survey.

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; information; financial activities; professional and business services; leisure and hospitality; and other services.

In March, both the unemployment rate, at 4.2%, and the number of unemployed people, at 7.1 million, changed little from February. The unemployment rate has remained in a narrow range of 4.0% to 4.2% since May 2024.

Monthly Revisions

Monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for January was revised down by 14,000, from 125,000 to 111,000, and the change for February was revised down by 34,000, from 151,000 to 117,000. With these revisions, employment in January and February combined is 48,000 lower than previously reported.