US Job Growth Remains Solid Despite Federal Reserve’s Interest Rate Hikes

The US economy remains on solid footing despite the Federal Reserve’s nine interest rate hikes over the past year, as employers added a solid 236,000 jobs in March. According to the latest monthly jobs report, US hiring slowed in March but remained robust, with gains in service-providing businesses like bars and restaurants, but weakness in construction and manufacturing.

Average hourly wages in March were up 4.2% from 12 month earlier, down sharply from a 4.6% year-over-year increase in February. Measured month to month, wages rose 0.3% from February to March, a tick up from a mild 0.2% gain from January to February.

Leisure and hospitality employers added 72,000 jobs last month, the most of any industry, followed by government employers and the professional and business services industry. Employment in the retail sector, however, shrank by 11,000 jobs in March.

The manufacturing sector also saw a decline in employment, with a loss of 6,000 jobs in March. This was the first decline in manufacturing employment since October 2020.

Overall, the US economy remains on solid footing despite the Federal Reserve’s nine interest rate hikes over the past year. The leisure and hospitality sector has been a major driver of job growth since the economy began its recovery from the pandemic, while the manufacturing sector has seen a slight decline in employment.