OAN Staff Katherine Mosack
8:25 AM – Friday, April 3, 2026
The United States Department of Labor (DOL) announced that non-farming employment increased by 178,000 jobs in March, a figure that well exceeded expectations from Wall Street and London economists.
The Labor Department’s Bureau of Labor Statistics (BLS) also reported on Friday that the unemployment rate saw a slight decline to 4.3%, which was also lower than the 4.4% rate predicted by economists polled by the London Stock Exchange Group (LSEG). This was the rate reported in February
The LSEG expected a gain of 60,000 jobs while Wall Street economists predicted a gain of 59,000, according to CNBC.
Average hourly earnings for all private payroll employees rose by 9 cents, or 0.2%, during March, reaching $37.38. Over the year, average hourly earnings increased by 3.5%.
March job growth by sector
Health care added 76,000 jobs. This included 54,000 ambulatory health care service jobs and an increase of 35,000 in physician offices as workers returned from strikes.
Construction employment grew by 26,000.
Transportation and warehousing grew by 21,000 jobs, with 20,000 more couriers and messengers.
The social assistance field added 14,000 jobs.
Many major industries saw little to no change over the month, including oil and gas extraction, mining, manufacturing, wholesale and retail trade, leisure and hospitality, and other services.
Meanwhile, finance and insurance employment declined by 15,000, having reached a peak in May 2025.
Federal government employment also declined by 18,000 after reaching a peak in October 2024.
Labor market indicators
The unemployment rate remained steady at 7.2 million unemployed people, showing little change. This was reflected among most demographics, including adult men and women, teenagers, and various racial and ethnic groups. However, the unemployment rate for Asian individuals decreased to 3.7%.
Neither the labor force participation rate, at 62.9%, nor the employment-population ratio, at 59.2%, changed significantly in March.
“The broader story of 2026 so far remains one of recalibration rather than acceleration. Slowing population growth, a steep drop in immigration and declining labor force participation mean the economy simply doesn’t need to produce the job gains of prior cycles to keep unemployment stable,” Indeed Hiring Lab director of economic research Laura Ullrich stated.
“This year will most likely be a year of shifting labor dynamics as artificial intelligence upends the job market, especially for low-skilled roles. We continue to see healthy job opportunities for workers with experience,” said Jeffrey Roach, chief economist for LPL Financial. “Average hourly earnings rose 3.5% from a year ago, giving consumers enough buying power to overcome nagging inflation. This update on the job market gives the Federal Reserve more time to wait for inflation to decelerate before taking action.”
The Federal Reserve has been cautious so far this year, having left interest rates untouched for several meetings after three consecutive quarter-point drops in late 2025. The latest data is unlikely to significantly impact the Fed’s strategy regarding interest rates for the foreseeable future, however.
The BLS scheduled the Employment Situation for April 2026 to be released on Friday, May 8th.
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