The job market is clearly starting to slow down
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- The US added 236,000 jobs in March less than the revised gain for February.
- The unemployment rate went from 3.6% to 3.5%.
- Job growth was just under the forecast of 239,000 jobs added.
The US didn't see as strong job growth in March as it did in February.
That's according to Friday's employment report from the Bureau of Labor Statistics. The US added 236,000 nonfarm payrolls in March, falling just short of the median forecast of 239,000 from economists. The job gain in March was also below February's revised gain.
February's gain was revised from 311,000 to 326,000. January's gain was updated from 504,000 to 472,000.
The unemployment rate also moved down in March. The rate changed from 3.6% to 3.5%. The economists' forecast was 3.6%, which was the rate in February.
While the payroll gain in March was below February's job creation, the labor market is still showing some strength, according to today's report and Job Openings and Labor Turnover data.
Job openings tumbled by 632,000 in February to 9.9 million. Daniel Zhao, lead economist at Glassdoor, noted in a Twitter post that this is "the first time since May 2021" that monthly job openings in the US were under 10 million. However, the level is still above the 7 million openings in February 2020 before the pandemic.
There were 4.0 million quits in February, up by 146,000 from January's estimate. Hires continued to be about 6 million — with 6.2 million in February compared to 6.3 million in January.
"Overall, the February JOLTS report pointed to normalizing demand for labor, following the mass rehiring frenzy of 2021-2022," Julia Pollak, chief economist at ZipRecruiter, said.
"But it suggested that some labor market dynamics may be permanently altered in the post-pandemic world: employee quits seem to be permanently higher, and layoffs permanently lower, than was normal in the twenty years before the pandemic," she added. "In other words, workers seem to have more control over when and how they switch jobs."
This is a developing story. Please check back for updates.