Defying a growth scare, the economy added 228,000 jobs last month

The U.S. economy added 228,000 jobs in March, easing concerns that the economy is slowing. The unemployment rate was little changed at 4.2%.

The biggest job gains occurred in health care, in social assistance, and in transportation and warehousing. Employment also increased in retail trade, partially reflecting the return of workers from a strike. Not surprisingly, in light of the Department of Government Efficiency’s recent efforts, federal government employment declined.

In March, the health care sector added 54,000 jobs, in line with the average monthly gain of 52,000 over the prior 12 months. Over the month, employment continued to trend up in ambulatory health care services (+20,000), hospitals (+17,000), and nursing and residential care facilities (+17,000).

Hiring in the social assistance sector increased by 24,000, higher than the average monthly gain of 19,000 over the prior 12 months. Over the month, individual and family services added 22,000 jobs.

More retail jobs

Retail trade added 24,000 jobs in March, as workers returning from a strike contributed to a job gain in food and beverage retailers (+21,000). General merchandise retailers, however, lost 5,000 jobs. Employment in retail trade changed little over the year.

Employment in transportation and warehousing rose by 23,000 in March, about double the prior 12-month average gain of 12,000. In March, job gains in couriers and messengers (+16,000) and truck transportation (+10,000) were partially offset by a job loss in warehousing and storage(-9,000).

People with jobs earned slightly more money in March. Average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents, or 0.3%, to $36.00. Over the past 12 months, average hourly earnings have increased by 3.8%.