The U.S. economy added 178,000 jobs in March, far surpassing forecasts of 59,000, while the unemployment rate dipped to 4.3%, the Labor Department reported.
Healthcare led the rebound, adding 76,000 positions after February losses tied to strikes. Construction gained 26,000 jobs, though annual growth remained flat.
Federal employment continued its decline, down 11.8% since October 2024, as the Trump administration pursues aggressive government downsizing.
Revisions lowered January and February job totals by 7,000.
Analysts note underlying labor market stress: weak hiring is matched by shrinking labor supply, driven in part by tightened immigration policies and deportations.
The data provides political momentum for President Trump, who credits his economic agenda despite global trade disruptions and Fed caution over inflation and geopolitical risks.