Hiring in the U.S. was more robust than expected in March after falling sharply in February. The Bureau of Labor Statistics (BLS) reports that U.S. employers expanded payrolls by 178,000 jobs last month, far exceeding economists’ projections of between 60,000 to 65,000 jobs.The BLS also notes that the U.S. economy added 7,000 fewer jobs than previously reported in January and February combined.
Private education and health services employers fueled job growth in March
The private education and health services industry led the way in job gains last month, with employers increasing payrolls by 91,000 jobs. The leisure and hospitality sector was also a significant contributor to job growth in March, adding 44,000 jobs.The BLS reports these industries also saw job gains in March:Construction: 26,000 jobs addedTransportation and warehousing: 21,000 jobs addedManufacturing: 15,000 jobs addedRetail trade: 9,700 jobs addedWholesale trade: 3,300 jobs addedProfessional and business services: 2,000 jobs added, including 4,400 jobs in temporary help servicesIndustries that experienced payroll contraction in January include financial activities (-15,000 jobs), government (-8,000 jobs) and information (-3,000 jobs).Job seeking? See more data on industries hiring now.
National unemployment rate decreased slightly to 4.3%
Many employers prepared to hire skilled talent, but struggling to find it
Beyond the March payroll data, other recent indicators suggest the labor market remains active but selective. According to the latest Job Openings and Labor Turnover Summary (JOLTS) from the BLS, the number of job openings was little changed at 6.9 million in February. Hires declined to 4.8 million, total separations edged down to 5.0 million and the quits rate slipped to 1.9%, reflecting a labor market where both employers and workers are still moving cautiously.Small business data tells a similar story. The National Federation of Independent Business (NFIB) reports that 32% of small business owners had job openings they could not staff in March. Among those hiring or trying to hire, 87% said they had few or no qualified applicants.Taken together, the data suggests that while many employers remain prepared to hire, access to skilled talent continues to be a challenge. In a recent Robert Half survey, only 6% of hiring managers say their organizations have the talent needed to complete high-priority projects this year. That same survey found that 60% of employers plan to add new permanent employees by mid-2026, while 55% expect to bring on contract talent.
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Dive deeper into labor market trends—with insights from Robert Half
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