Jobs report shows unexpected gains, but unemployment rises again

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The Brief

Surprisingly strong jobs numbers for March provided a much-needed boost to financial markets that are reeling in the face of President Trump’s widespread tariffs.
Employers added 228,000 non-farm jobs last month, much more than the 130,000 that economists predicted.
Economic uncertainty remains high in the wake of Trump’s global trade war.

The U.S. added a higher-than-expected number of jobs in March, but economists warn the numbers are a rearview mirror look as President Donald Trump moves forward with a risky global trade war.

Trump was quick to claim victory after the Labor Department released the data, posting on his Truth Social platform that the hiring numbers proved that his policies were “already working.” He also said: “My policies will never change.”

Jobs report for March 2025

By the numbers

U.S. employers added a surprising 228,000 non-farm jobs in March. The hiring numbers were up from 117,000 in February and were nearly double the 130,000 that economists had expected. Labor Department revisions shaved 48,000 jobs off January and February payrolls.

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Workers’ average hourly earnings rose 0.3% from February, about what economists had expected. Compared to a year earlier, hourly pay was up 3.8%, a bit lower than the 4% that had been forecast and nearing the 3.5% year-over-year gains that are seen as consistent with the Federal Reserve’s 2% annual inflation target.

FILE – A “Now Hiring” sign is seen at a West Fargo Bank location on E 42nd Street on June 07, 2024 in New York City. March 2025’s jobs report was stronger than expected, but economists warn that may not last. (Photo by Michael M. Santiago/Getty Images)

Healthcare companies added almost 54,000 jobs and restaurants and bars nearly 30,000 as the job market bounced back from bitter winter weather in January and February. The federal government lost 4,000, a sign that Elon Musk’s purge of the federal workforce may only be starting to show up in the data.

What they’re saying

“The market needed today’s number,” said Seema Shah, Chief Global Strategist, Principal Asset Management. “Everyone knows that economic weakness is coming, but at least we can be reassured that the labor market was robust coming into this policy-driven shock.”

Unemployment numbers for March 2025

Unemployment rose to 4.2%.

The unemployment rate rose modestly but for what economists consider a good reason: 232,000 people entered the labor force — which means they were either working or looking for work — though not all of them found jobs right away.

Stock markets tumble after Trump tariffs announced

Why you should care

Financial markets have been reeling in response to Trump’s “Liberation Day” announcement of his latest set of tariffs.

The Dow Jones index plunged 1,000 points at the opening bell Friday after China announced retaliatory tariffs against the U.S. That followed a 1,600-point drop on the previous day.

Other economic threats come from Trump’s firings of federal workers and the cancelling of government contracts and his promise to deport millions of immigrants who are working in the United States illegally. In the past several years, those workers have eased labor shortages and helped the economy keep growing. If they’re deported or frightened out of the job market, companies could have to cut back on what they do or increase wages and raise prices, potentially feeding inflation.

The other side

“This could be the high water mark as we go into spring,’’ said Diane Swonk, chief economist at the accounting giant KPMG. Economic uncertainty remains high, she said. “Do the tariffs hold? Does the trade war escalate? How disorderly do markets get? There’s a lot of things in play right now.”

The Source

This report includes information from The Associated Press.