The U.S. economy added 228,000 jobs in March 2025, significantly exceeding analysts’ expectations of around 137,000 jobs. The growth comes amid Trump’s recent tariff increases, escalating the ongoing trade war and raising concerns about potential economic impacts.
This robust job growth marks a notable rebound from the previous month, where job additions were revised down from 151,000 to 117,000.
Despite the positive job growth, the unemployment rate unexpectedly rose to 4.2 percent, up from 4.1 percent in February. This increase has raised concerns about the overall confidence in the job market, as consumer sentiment has been declining amid fears of a potential recession. The rise in unemployment comes as federal government employment saw a decrease of 4,000 jobs, reflecting ongoing efforts to streamline the workforce under the Department of Government Efficiency (DOGE).
Wage growth also showed signs of cooling, with average hourly earnings rising 3.8 percent year-over-year, compared to a 4 percent increase in February. This slowdown in wage growth may further impact consumer confidence, which has already been shaken by economic uncertainties and rising inflation.
“EXCELLENT JOB NUMBERS, MUCH BETTER THAN ANTICIPATED. IT’S ALREADY MAKING A DIFFERENCE,” Trump posted on Truth Social following the jobs report release.
Read more: U.S. tariffs could constrict global trade by 1 percent in 2025, WTO warns
Economists are closely monitoring these developments, as the Federal Reserve uses labor market data to inform its interest rate decisions. The next scheduled interest rate meeting is set for May, where further economic indicators will be evaluated.
Overall, while the job growth in March is a positive sign for the economy, the accompanying rise in unemployment and cooling wage growth suggests that challenges remain ahead for both policymakers and consumers.
