Daijiworld Media Network - Washington
Washington, Apr 4: The United States labour market showed signs of resilience in March, with employers adding 178,000 jobs, surpassing expectations despite ongoing geopolitical tensions linked to the conflict involving Iran.
According to data released by the US Bureau of Labor Statistics, the unemployment rate declined to 4.3%, indicating steady recovery in hiring activity after a challenging February.
Revised figures revealed that the economy had lost 133,000 jobs in February, a steeper decline than initially estimated. Meanwhile, January job gains were revised upward from 126,000 to 160,000. Overall, combined revisions for the first two months of the year resulted in a net reduction of 7,000 jobs compared to earlier estimates.
Economists noted that the US labour market continues to reflect a “low-fire, low-hire” trend, with both hiring and layoffs remaining subdued. Data from Challenger, Gray & Christmas showed that employers announced 217,362 job cuts in the first quarter of 2026, the lowest for this period since 2022.
However, hiring momentum remains weak. February recorded the slowest hiring pace in six years, particularly in sectors such as construction and leisure and hospitality.
The “quits rate,” a key indicator of worker confidence, fell to 1.9%—its lowest level since 2020—suggesting that employees are increasingly reluctant to switch jobs amid uncertainty.
The slowdown follows a broader trend of modest job growth. In 2025, the US economy added just 116,000 jobs over the entire year, a figure that previously matched average monthly gains in stronger periods.
Inflation trends have also influenced employer caution. After falling to 2.3% in April 2025, inflation rose to 3% in September and has stabilised at around 2.4% in recent months. However, rising oil prices linked to global tensions are expected to exert fresh pressure.
Fuel prices have already surged, with average gas prices crossing $4 per gallon. Analysts warn that sustained increases in oil prices could push inflation higher, noting that every $10 rise in crude oil prices may lead to a 0.2% increase in inflation.
Experts say the situation bears similarities to 2022, when the Russia-Ukraine War triggered a sharp spike in energy prices and inflation.
While March figures indicate resilience, economists caution that external factors and market uncertainties could continue to weigh on the US labour market in the coming months.