Hickey Jobs Report Analysis - March, 2024

Surprising many economists, American employers once again outpaced market expectations by adding 303,000 jobs in March. Further, the nation’s unemployment rate dropped back down to 3.8 percent, again defying outlooks.

According to the latest U.S. Bureau of Labor Statistics Jobs Report, the largest job gains for March 2024 were seen in Health Care, Government, and Construction, among others.

As noted, the nation’s unemployment rate dropped to 3.8 percent, a decrease of 0.1 percent from the previous month. With the reduced rate, the nation has now been below four percent unemployment for over two years.

Hourly wages for all employees on private nonfarm payrolls saw a slight increased rate from the previous month with a 0.3 percent, or 12 cents, gain. The annual wage growth rate over the previous twelve months is now at 4.1 percent, which still trails inflation, is markedly lower than the nearly six percent growth rate seen in 2022.  

We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:

1. To the surprise of many economists, American employers once again outpaced expectations by adding 303,000 new jobs in March 2024.  With the job growth, and an increase in the labor participation rate, the unemployment rate also dropped to 3.8 percent.

2. Wage growth picked up steam from the previous month by increasing by 0.3 percent, establishing a 4.1 percent growth year over the last twelve months. This trend means wages are still trailing inflation and the growth rate is well below the average seen in 2022.

3. Health Care and Government were again the leading sectors for job gains, adding a combined 143,000 workers to the nation’s payrolls over the previous month.

4. With increasing demand from industry, the critical Construction sector added 39,000 jobs in March. This figure is more than double the average monthly gains for the sector over the past year.

5. The embattled Leisure and Hospitality sector increased payrolls by a whopping 49,000 jobs, which finally returns the pandemic-stricken industry to pre-COVID employment levels.

For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.

Report Summary

According to the latest U.S. Jobs Report, the American economy once again outpaced market expectations by adding 303,000 jobs to Total Nonfarm Payroll employment. Meanwhile, the nation’s unemployment rate dropped to 3.8 percent, marking over two years below the four percent level.

The Health Care and Government sectors were once again the leading job gainers with a combined hiring surge of 143,000 jobs. They were followed by surprising sectors in Construction and Leisure and Hospitality, which added 39,000 jobs and 49,000 jobs, respectively.

Estimates over the previous months were also boosted in today’s new Jobs Report. February estimates increased by 27,000, moving from 229,000 to 256,000.  Meanwhile, January numbers were revised down slightly by 5,000, adjusting from 275,000 to 270,000. In total, these changes resulted in an increase of 22,000 jobs created in the new year, thus far.

In a positive sign for the jobs market, the labor participation rate ticked up by 0.2 percent to 62.7 percent overall.

Wage growth jumped for a slow bump the previous month with an increase of 0.3 percent, or twelve cents. Overall, the annual wage growth rate has slowed it’s torrid pace since over previous years, which is not at 4.1 percent. Mixed figures overall for the Federal Reserve as they evaluate interest rates in the near term.

Key Industries

• Leisure and Hospitality

  Leisure and Hospitality sectors once again had a banner month by adding 49,000 jobs across the dynamic, embattled industries. With these new hires, the industry has finally returned to pre-pandemic employment levels.

• Health Care

  Health Care added another whopping 72,000 jobs over the previous month, outpacing the monthly annual average of 60,000 new workers. Hiring was primarily led by Ambulatory Health Care Services, Hospitals, and Nursing and Residential Care Facilities.

• Government

  Government employment also exceeded the sector’s monthly annual hiring average by adding 71,000 new jobs. Local government hiring boomed with the addition of 49,000 new jobs.

• Social Assistance

  The Social Assistance added another 9,000 new jobs to the nation’s workforce, but this marks a significant drop from the monthly annual average rate of 22,000.

• Construction

  More than doubling their monthly annual hiring trend, the critical Construction industry added 39,000 new jobs in March. This surge was led by Nonresidential Specialty Trade Contractors with 16,000 additional workers.

For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.

If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: