?U.S. employers added 236,000 new jobs in March, holding to expectations, and the unemployment rate dipped to 3.5 percent, according to the latest employment report from the U.S. Bureau of Labor Statistics. The report shows that employers are gradually pulling back on hiring after strong job growth the first two months of the year. Most of the new jobs were reported in leisure and hospitality, professional business services and health care.
The uber-resilient labor market is finally showing some signs of losing steam amid the Federal Reserve’s efforts to cool inflation by raising interest rates. Job openings are shrinking, layoffs are rising and hiring activity is losing momentum. Job openings in the United States dropped below 10 million for the first time in nearly two years. The overall strength of job creation, especially in industries like leisure and hospitality and health care, has thus far offset the job losses seen in technology and finance, but uncertainty remains about the extent to which those layoffs may ripple through the broader labor market. Economists generally still believe a recession is due later this year or next.