Quick Commentary on US March Non-Farm Employment Report

U.S. Non-Farm Employment increased by 178,000 in March, the largest gain since the end of 2024. The increase exceeded the expected 65,000, while the previous figure was revised from a decrease of 92,000 to a decrease of 133,000. The U.S. Unemployment Rate dropped to 4.3% in March, lower than the expected value and the previous figure (both were 4.4%). U.S. job growth rebounded in March, and the unemployment rate fell unexpectedly, suggesting that the labor market is stabilizing as the conflict in Iran began. The growth in employment was primarily due to the recovery of jobs in the healthcare sector, following the resolution of the strike by Kaiser Permanente employees in California and Hawaii. Business volume in construction as well as leisure and hospitality also grew. Economists generally expected the unemployment rate to decline following the rebound in March employment (previously, more than 30,000 healthcare workers went on strike, and severe cold weather led to a significant increase in unemployment in February). This solid growth will help reinforce the Federal Reserve's focus on inflation risks, as the conflict in the Middle East has led to a rapid rise in energy prices.