Job creation in the United States last month achieved growth that far exceeded expectations, according to government data published on Friday, which enhances the possibility of the Federal Reserve (the US central bank) keeping borrowing rates the same for a longer period.
The world’s largest economy created 303,000 jobs in March, an increase of more than 50,000 jobs compared to 270,000 jobs created the previous month, according to what the Ministry of Labor announced.
The increase, which comes seven months before an election in which President Joe Biden and former Republican President Donald Trump will face off in November, is much higher than market expectations for an increase of 200,000 jobs, according to the Briefing website.
The unemployment rate fell to 3.8 percent from 3.9 percent in February, in line with expectations, continuing the streak of unemployment rate below 4 percent, the longest in decades.
A statement by the US President said, “The report issued today represents a milestone in the return (recovery) of the United States.”
Biden added, “Three years ago, I inherited an economy on the brink of the abyss. With the report issued today stating that 303,000 jobs were created in March, we have crossed the threshold of 15 million jobs created since I took office.”
In addition, the wage growth rate increased by 0.3 percent on a monthly basis, while average hourly earnings increased by 4.1 percent from the previous year, according to figures from the Ministry of Labor.
The labor force participation rate remained almost stable at 62.7 percent.
The largest share of jobs created was in the healthcare and government sectors, and to a lesser extent in the leisure and hospitality sectors.
The numbers reflect a slight decline in the unemployment rate in general, despite its rise among black Americans, noting that this rise was offset by a decline among those of Asian and Latino origin.
The Wall Street Stock Exchange closed higher on Friday, in a rebound from declines in previous sessions against the backdrop of geopolitical concerns.
There is a discussion among decision makers at the Federal Reserve, headed by Jerome Powell, regarding the appropriate timing to begin lowering interest rates, amid efforts to return inflation to the target rate of 2 percent without harming the prosperous American economy.
The inflation rate declined sharply last year, while the economy and labor market maintained their strength, but it has been taking an upward trend since the beginning of the year, which prompts some decision makers to delay the expected timing of the start of interest cuts.
2024-04-05 22:08:15
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