The United States Unemployment Rate Falls to 3.5 Percent in March 2023

By Garvit Vyas , 29 May, 2023

The United States economy adds up jobs quicker in March 2023. With this, the unemployment rate goes down to 3.5 percent. This signs persistent labor market closeness, which would witness the Federal Reserve raising interest rates again in May 2023.

According to the reports given by the Labor Department, the nonfarm payrolls increased by 2,36,000 jobs. March. The data shows that for February, up to 3,26,000 jobs were added in place of 3,11,000, as reported. Also, the slow hiring process reflected the faded boost from unseasonably mild weather in January and February.

As per the polls done, economists forecast payrolls to rise to 2,39,000. Also, the estimates ranged from 1,50,000 to 3,42,000. The reports further reveal the economy needs to create almost 1,00,000 jobs every month to keep up the growth in this working-age population.

As the most recent economic data says, it was too early for financial market stress as triggered by the failure of regional banks in the United States, that is, Signature Bank and Silicon Valley Bank, in March 2023 to show in the employment report.

The reports also show that the unemployment rate fell from 3.6 percent to 3.5 percent in February. Also, the average hourly earnings rose to 0.3 percent in March after 0.2 percent rise in February 2022. The financial markets inclined more towards the United States central bank increased rates by another 25 basis points at the May meeting, as told by CME Group's FedWatch tool.