The U.S. economy added 228,000 jobs in March

​In March 2025, the U.S. economy added 228,000 jobs, surpassing economists' expectations of 140,000 and exceeding the prior 12-month average of 158,000. The unemployment rate edged up slightly to 4.2% from 4.1% in February.

Unemployment and Labor Force Participation
In March, the unemployment rate ticked up slightly from 4.1% to 4.2%, reflecting modest changes in the labor market despite strong job growth. The number of unemployed individuals rose to 7.3 million, an increase of roughly 200,000 from the prior month. Meanwhile, the labor force participation rate remained unchanged at 62.5%, holding steady after February’s slight rebound.

Notably, the number of people employed part-time for economic reasons—those who would prefer full-time work but are working part-time due to business conditions or reduced hours—increased again, rising by 300,000 to 5.2 million. This ongoing rise suggests that while job creation remains strong, underemployment continues to impact segments of the workforce, particularly in industries still adjusting to post-pandemic demand fluctuations.

With participation stagnant and unemployment slightly elevated, the labor market remains tight, though signs of softening may be emerging beneath headline job gains.

Industry-Specific Job Gains and Losses
Job growth in March was broad-based across sectors, with especially strong gains in Healthcare, Retail Trade, and Transportation and Warehousing. Healthcare once again led the way, adding 54,000 jobs, consistent with its average monthly growth over the past year. These gains were spread across hospitals, ambulatory care, and nursing and residential care facilities.

Social Assistance also continued its upward trend, adding 24,000 jobs, while Transportation and Warehousing rebounded strongly with a 23,000 job gain, nearly doubling its recent average. Meanwhile, Retail Trade added 24,000 jobs.

Conversely, Federal Government employment continued to decline, shedding 4,000 jobs, following a loss of 11,000 in February.

Other industries with significant changes included:

• Construction: +39,000 jobs (rebounding from weather-related weakness earlier in the year)

• Durable Goods Manufacturing: +15,000 jobs

• Financial Activities: +12,000 jobs, led by gains in real estate and insurance

• Professional and Business Services: +19,000 jobs

• Leisure and Hospitality: +14,000 jobs, showing signs of stabilization after prior month losses

• Food and Beverage retailers: +11,000 jobs

Overall, the March data points to a resilient job market with solid momentum in key service-related industries, though public sector employment continues to lag.

Revisions to Previous Data

Revisions to past data showed a slight downward adjustment. The January 2025 employment figure was revised down by 12,000 jobs, while February 2025 was revised down by 5,000 jobs, for a combined revision of -17,000 jobs. Although modest, these changes reflect some of the noise and ongoing recalibration common in early-year reporting. Despite the revisions, the strength of March’s job gains and continued growth in core sectors like healthcare and construction reinforce the overall resilience of the labor market.

Earnings and Workweek Trends

Average hourly earnings rose by 3.8% year over year in March, a slight deceleration from earlier months and a continuation of the gradual easing in wage pressures. Workers in Goods-producing industries saw a 3.9% increase, while those in Service-providing sectors experienced a 3.7% rise in average hourly pay.

Although earnings growth remains positive, the 3-month annualized wage growth rate continues to cool, signaling that wage inflation is stabilizing. This trend may reflect increased labor availability and improved hiring efficiency, even as overall demand for workers remains high.

The average workweek held steady at 34.3 hours, unchanged from February, indicating consistent labor demand across most sectors without significant expansion or contraction in hours worked.

Key Insights from External Sources

The Wall Street Journal:   In March 2025, the U.S. economy added 228,000 jobs, significantly surpassing economists' expectations of 140,000 and the 12-month average of 158,000, according to the Labor Department.

Reuters: The U.S. economy added far more jobs than expected in March, but...sweeping import tariffs could test the labor market's resilience in the months ahead amid sagging business confidence and a stock market selloff.

Society for Human Resource Management (SHRM): Wages increased 3.8% year-over-year in March, down from 4% in February and the lowest level since July 2024.

As the hourly expert, Snagajob is here to help with your hiring needs. Contact our team today to learn more about our solutions for enterprise, mid-size, and small businesses.