The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls (NFP) in the US rose by 303,000 in March, surpassing market expectations by a significant margin. The market had anticipated an increase of 200,000. Additionally, the growth recorded in February was revised lower from 275,000 to 200,000.
Further details of the report revealed that the Unemployment Rate edged lower to 3.8% from 3.9%, indicating an improvement in labor market conditions. Moreover, the Labor Force Participation Rate increased to 62.7% from 62.5%. Annual wage inflation, measured by the change in Average Hourly Earnings, edged lower to 4.1%, aligning with forecasts.
The BLS press release noted revisions to previous months’ data, stating, “The change in total nonfarm payroll employment for January was revised up by 27,000, from +229,000 to +256,000, and the change for February was revised down by 5,000, from +275,000 to +270,000.” These revisions resulted in a combined increase of 22,000 jobs for January and February compared to previous reports.
Market Reaction to US Nonfarm Payrolls Data
The immediate market reaction to the US jobs report saw the US Dollar strengthening against its rivals. At the time of press, the US Dollar Index was up 0.4% on the day, trading at 104.60.