According to data released today by the Bureau of Labor Statistics, total nonfarm payroll employment expanded by 178,000 jobs in March, well above market expectations for a gain of 65,000. This followed a revised decrease of 133,000 in February, and average monthly job creation was 68,000 in the first quarter of the year. Healthcare led the job expansion (+76,000), followed by leisure and hospitality (+44,000), transportation and warehousing (+21,000) and manufacturing (+15,000). Gains were offset by declines in finance and insurance (-16,200) and government (-8,000). The unemployment rate fell to 4.3% from 4.4% last month, slightly below market expectations of 4.4%.
The ABA Office of the Chief Economist views this month’s stronger-than-expected nonfarm payroll data as consistent with other economic indicators we have been monitoring, such as Purchase Manager Indices and existing home sales. With the labor market appearing to be stabilizing, the latest release indicates that an immediate economic downturn is still unlikely. ABA economists believe the latest job market strength should support consumer loan demand and credit quality in the near future.
