The US labor market recovered sharply from February’s considerable losses.
According to a Friday morning release from the Bureau of Labor Statistics, the country added 178,000 jobs in March, after losing 133,000 positions the previous month. Economists’ forecasts were that 60,000 jobs would be created.
The unemployment rate fell to 4.3% compared to 4.4% in February and expectations of 4.4%.
At least part of the change was due to a sizable downward revision in February data from an originally reported decline of 92,000.
Bitcoin is trading quietly near the $67,000 level in the hours leading up to the data. he remained there in the minutes immediately following the report.
US stock index futures remained modestly lower, with the Nasdaq 100 falling 0.2%. The 10-year US Treasury yield jumped four basis points to 4.36%.
Lately, expectations about the future course of interest rates have been much more influenced by events in the Middle East and the price of crude oil than by domestic economic growth prospects.
As recently as last week, rising oil prices had markets forecasting imminent rate hikes by the US Federal Reserve. However, speaking earlier this week, Federal Reserve Chair Jerome Powell said the central bank recognized that oil price shocks – while initially making headline inflation numbers look worse – can depress economic activity. He indicated the Federal Reserve would be in no rush to raise rates in response to short-term moves in crude oil prices.
This morning’s strong pace suggests growing momentum in the economy, perhaps putting 2026 rate hikes back on the table.
