Analysis: U.S. March employment rebounded better than expected, driven by the end of strikes and rising temperatures

Deep Tide TechFlow message, April 3, according to data from JIn10, U.S. employment growth in March rebounded by more than expected. The reasons include the end of a strike in the healthcare industry and a rise in temperatures. Meanwhile, the unemployment rate fell to 4.3%, but as uncertainty grows over the prospects of the Iran war, downside risks facing the labor market are increasing.

A highly watched employment report released by the U.S. Bureau of Labor Statistics on Friday showed that nonfarm payroll jobs increased by 178,000 last month, far above market expectations of 60,000, marking the largest gain since the end of 2024. February data was revised downward by 133,000. The unemployment rate in March was 4.3%, also below market expectations.

Economists generally expect that after the strike ends, the job market in March will rebound. In February, unemployment among more than 30,000 healthcare workers and the harsh winter weather led to a sharp drop in the unemployment rate.

This strong growth could further reinforce the Federal Reserve’s attention to inflation risks, because the Middle East war has triggered a rapid rise in energy prices, intensifying that concern. Wage growth was mainly driven by employment levels in the healthcare sector, which has recovered since the strike ended. After declining in February, the construction, leisure and entertainment, and hotel industries also rebounded, which may reflect a weather-related economic recovery.