Job Creation Rebounds in March, Unemployment Dips

Published as of: April 3, 2026, 9:25 a.m. ET

(Editor's note: The U.S. stock market is closed today for Good Friday. This will be an abbreviated report. Our regular coverage will resume Monday morning.)

(Friday open) The U.S. economy created 178,000 jobs in March, far more than expected, the U.S. government said Friday in its nonfarm payrolls report. The stock market is closed today and won't immediately trade on the data, but bonds are trading in an abbreviated Good Friday session and the 10-year Treasury note yield jumped about three basis points to 4.35% immediately after the data.

"This report shouldn't change the Fed's near-term plans, and we still expect an extended pause, but this should give some of the more dovish Fed officials some comfort as they have generally tended to focus on the potential weakening of the labor market," said Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research, or SCFR.

Meanwhile, the unemployment rate ticked lower to 4.3%. Analysts had expected jobs growth of slightly above 50,000 and steady unemployment of 4.4%. Areas of strength included health care and construction, adding 76,000 and 26,000 jobs, respectively, while the federal government lost 18,000 roles. One important distinction is average hourly earnings, which rose less than expected by just 0.2% for the month and 3.5% year over year. The annual increase was the lowest reading since May 2021, according to CNBC. At some point, weaker wage growth and higher non-discretionary costs, such as gas, could be a drag on consumer demand if the war in Iran continues.

February's numbers were adjusted lower, reflecting a loss of 133,000 from the previously reported 92,000. "Lower revisions has been the trend lately, so the strong monthly gain in March could end up being softer after revisions come in," Martin said. With revisions to January and February factored in, employment in those two months climbed 7,000 less than previously reported, the government said. For the first three months of the year, monthly jobs growth averaged about 68,000. That's relatively low but near the level needed to keep pace with population growth. It's not a number likely to make the Fed worried about inflation, but it could keep policymakers uneasy about a much slower labor market than in recent years.

Major indexes finished mixed Thursday in a volatile session to close the shortened week. The S&P 500 Index and the Nasdaq Composite both recovered from sharp early losses to close slightly higher heading into the long weekend. The Dow Jones Industrial Average closed a touch lower. Small caps climbed, Treasury yields steadied, and volatility eased. All this came as crude oil surged above $113 per barrel following President Trump's Wednesday night speech warning of more military action. Then, the Iranian state media reported the country is working on a deal with Oman to allow some ships to pass through the Strait of Hormuz, helping equities recover slightly. The S&P 500 rose 3.3% for the week.

Inflation will be in the limelight next week along with earnings from Delta Air Lines (DAL). February's Personal Consumption Expenditures (PCE) price index, the Fed's favored inflation gauge, comes out Thursday. Core PCE, which excludes more volatile food and energy prices, rose 3.1% year over year in January, its highest in nearly two years and well above the Fed's 2% target. Friday brings the March Consumer Price Index (CPI). It will be the first inflation report to include data from after the Iran war began. Other major data include the third estimate for fourth quarter gross domestic product (GDP), and minutes from the Fed's last meeting.

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Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.

April 6: No major earnings or data expected.
April 7: No major earnings or data expected.
April 8: Expected earnings from Delta Air Lines (DAL), Constellation Brands (STZ), and Applied Digital (APLD).
April 9: Fourth quarter GDP-third estimate, February PCE prices.
April 10: March CPI and core CPI, preliminary April University of Michigan Consumer Sentiment.