04/07/2023

U.S. Job Growth Solid in March

However, wage inflation is cooling

U.S employers maintained a strong pace of hiring in March, pushing the unemployment rate down back to 3.5 percent, signs of labor market resilience that keep the Federal Reserve on track to raise interest rates one more time next month.

The Labor Department's closely watched employment report on Friday showed annual wage gains slowing, but remaining too high to be consistent with the U.S. central bank's 2 percent inflation target. As with most recent economic data, it was too early for financial market stress, triggered by the failure of two regional banks in March, to show up in the employment report.

"While this is an employment report not likely to cause alarm, per se, there is still no evidence [that] policy is tight enough to slow demand in a meaningful way, either," said Chris Low, chief economist at FHN Financial in New York.

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