U.S. employment heated up rapidly in March, with non-farm payrolls surging by 916,000, far exceeding the market estimate of 660,000 and increasing more sharply compared with the 379,000 increase in February; however, payrolls fell, showing that new employment was dominated by low-wage workers, especially in the leisure services sector.
The main data of the employment report are as follows.
- January and February employment numbers were revised upward by 156,000, further confirming the apparent recovery of the economy from this year.
- Private employment increased by 780,000 in March, higher than the market estimate of 643,000 and a surge of 465,000 compared to February; the manufacturing sector increased by 53,000, better than the estimate of 35,000 and 21,000 in February. The leisure and hospitality industry surged by 280,000, and the construction industry also increased by 110,000 because of the improved climate.
- Average hourly earnings fell 0.1% from February, while the market forecast was for an increase of 0.1%, far worse than February’s +0.2%; hourly earnings rose 4.2% annually, lower than the forecast of 4.5%, and February’s 5.3% increase. Average weekly hours worked per person was 34.9 hours, higher than the estimated 34.7 hours and the 34.6 hours in February.
- The unemployment rate fell to 6.0%, in line with forecasts and down further from 6.2% in February.
The labor force participation rate rose 0.1 percentage point to 61.5%, in line with forecasts, while the low employment rate fell from 11.1% to 10.7%, indicating a moderate rebound in labor’s willingness to find work.
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