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March 2025 Jobs Report: U.S. Adds 228,000 Jobs

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The U.S. economy added 228,000 jobs in March, the Bureau of Labor Statistics reported on Friday. The gains primarily came from the healthcare, social assistance, transportation, and manufacturing sectors. The unemployment rate ticked up to 4.2% from 4.1%.

The stronger-than-expected jobs number came as the government sector saw a decrease of 4,000 jobs, according to the BLS. More government layoffs were reported in early April and should be reflected on future jobs reports. The BLS clarifies that “Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.”

Other recent economic data include:

  • Continuing unemployment claims (1,903,000) reached their highest levels since November 2021 as new jobless claims fell to 219,000 last week.
  • The two primary inflation measures remained steady during February, with PCE at 2.5% and CPI at 2.8%. However, both numbers are higher if you take out more volatile energy and food prices.
  • Private employment increased by 155,000 in March, according to ADP, a private payroll provider.
  • Challenger, Grey & Christmas reports there have been as many job cuts in the last two months (February and March) as there had been in the previous six months before that (August through January).
  • Wages increased 4.3% year-over-year, continuing a stretch of wages outpacing inflation.

The latest jobs data comes as new economic policies are implemented and consumer confidence about the future reaches the lowest it has since 2013. “While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected,” Jerome Powell, Federal Reserve chairman, said Friday after the latest jobs report was released. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

He said that while recent economic policies “are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.”