The NFP data was reported to be strong almost in line with expectations in March as the labor market showed signs of slowing.
The Labor Department reported Friday that the NFP reading rose by 236,000 for the month, compared to the Dow Jones estimate of 238,000 and below the upwardly revised 326,000 in February.
The unemployment rate was also reported lower to 3.5%, compared to expectations that it would remain at 3.6%, with the drop coming as labor force participation rose to its highest level since before the Covid-19 pandemic.
While it was close to economists' expectations, the number was the lowest monthly job gain since December 2020 and came amid efforts by the Federal Reserve to slow labor demand to tame inflation.
Along with the increase in wages, there was a 0.3% increase in average hourly earnings, pushing the 12-month increase to 4.2%, the lowest level since June 2021. The average work week shrank lower to 34.4 hours.
The tourism and hospitality sector led the sector with growth of 72,000 jobs, below the rate of 95,000 in the past six months. Government (47,000), professional and business services (39,000) and health care (34,000) also posted strong increases.
In a separate report this week, the company reported that layoffs surged in March, up nearly 400% from a year ago, while jobless claims rose and private wage growth also appeared to be slowing.
These all bring indications that the measures applied by the Fed are beginning to show results. The central bank has raised its benchmark lending rate by 4.75 percentage points, the fastest tightening cycle since the early 1980s and an effort to lower rising inflation.
