The US added another 236,000 jobs in March, coming in right around expectations after a blockbuster start to the year.
Nonfarm payrolls rose about in line with expectations, indicating the labor market showed signs of slowing down.
Analysts were anticipating around 235,000 jobs to be added during the month.
The unemployment rate lowered to 3.5%, against expectations that it would hold at 3.6%. Average hourly earnings increased by 0.3%, pushing the 12-month increase to 4.2%, the lowest level since June 2021.
Pause in interest rate rises ahead?
The US added 517,000 jobs in January, blowing past expectations. That was followed by another 311,000 jobs in February, again surpassing estimates.
The narrative has shifted to an economy that appeared to be doing well to one that may be due for a pause in the pace of rate rises, according to CMC market analyst Michael Hewson.
“Job openings are still higher than they were pre-pandemic at just below 10 million, but they are still at their lowest level since May 2021, and have started to fall sharply and it is clear that the banking crisis in March has given the US economy a knock,” Hewson noted.
“The bigger question here is what a weak report will do to expectations around future rate rises, which the bond markets are already suggesting could be close to an end point.”
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