Employers Add 178,000 Jobs in March, Far Above Forecasts

U.S. employers added 178,000 jobs in March, a much stronger showing than economists expected, and the unemployment rate fell to 4.3 percent from 4.4 percent, the Labor Department reported Friday. Forecasters surveyed by FactSet had predicted about 60,000 new jobs, CBS News reported.

The gain followed a weak February, when payrolls fell. CBS News attributed that weakness partly to health care strikes and winter storms, and economists said the March rebound largely reverses those effects. Stephen Brown of Capital Economics wrote, as CBS News summarized, that the gains reflect the reversal of strike and weather effects rather than strong momentum, and Laura Ullrich of the Indeed Hiring Lab described 2026 so far as “recalibration rather than acceleration.” CBS News calculated that job growth averaged 68,000 a month from January through March.

Health care led the way with 76,000 jobs, helped by nurses returning to work after strikes, CBS News reported. Construction added 26,000 jobs and transportation and warehousing added 21,000, while federal employment fell by 18,000. NBC News reported that gains were concentrated in health care, construction, and transportation and warehousing.

Details beneath the headline numbers were less cheerful. The labor force participation rate fell to its lowest level since November 2021, NBC News reported, which helped pull the unemployment rate down because fewer people were counted as looking for work. Wage growth slowed to 3.5 percent over the past year from 3.8 percent in February, below forecasts, according to NBC News.

The data were collected before the full effect of the war with Iran. NBC News noted that the Labor Department’s surveys were completed by March 12, and the Atlanta Fed has since cut its real-time estimate of economic growth to 1.9 percent from more than 3 percent before the war. Gasoline has topped $4 a gallon and oil has stayed above $100 a barrel, CBS News reported. James McCann of Edward Jones warned CBS News that higher energy costs could lead firms to slow hiring and increase layoffs later this year, while Scott Helfstein of Global X told NBC News that risks to the labor market “remain elevated.”

Not every indicator points down. NBC News said the layoff rate remains at an all-time low, and job openings appear to be stabilizing. Challenger, Gray & Christmas counted about 60,000 announced job cuts in March, up from February but lower than a year earlier, CBS News reported.

The report matters for the Federal Reserve, which held interest rates steady in March and still projects one cut this year, though several economists expect none. Daniel Zhao of Glassdoor told CBS News the report eases pressure on the central bank to act right away while it weighs the inflation risk from higher energy prices. Public sentiment is gloomier: a CNN poll cited by NBC News found 31 percent approve of the president’s handling of the economy and 27 percent approve of his handling of inflation.