US Nonfarm Payroll Increases by 236,000 in March; Unemployment Inches Lower to 3.5%

The US Bureau of Labor Statistics (BLS) reported Friday (4-7-23) that total nonfarm payroll employment increased by 236,000 in March, compared with an average monthly gain of 334,000 over the prior 6 months.

Job growth was once again widespread, with notable growth occurring in the following:

• Leisure and hospitality added 72,000 new jobs, with food service and drinking places gaining 50,000 positions.
• Government employment rose by 47,000, about the same as the average monthly gains over the prior 6-month period.
• Professional and business services increased by 39,000, led by a gain of 26,000 in professional, scientific, and technical services.
• Health care added 34,000 new jobs, led by gains in home health services (15,000), hospitals (11,000), and nursing and residential care facilities (8,000).
• Social assistance added 17,000 jobs, below the average monthly gain of 22,000 over the prior 6 months.
• Transportation and warehousing gained 10,000 new jobs. Employment in this sector has experienced little net change in recent months.

In March, the BLS reports that employment was little changed in other major industries, including mining, quarrying, oil, and gas extraction; construction; manufacturing; wholesale trade; informational financial activities; and other services.

The unemployment rate declined to 3.5% in March, down slightly from February’s 3.6%. The number of unemployed persons declined to 5.8 million from 5.9 million in February. The BLS notes that these measures have shown little net movement since early 2022.

The BLS says monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for January was revised lower by 32,000 to 472,000, and the change for February was revised upwardly to 326,000 from the originally reported 311,000. With these revisions, employment in January and February combined is 17,000 lower that initially reported.