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US hiring accelerates unexpectedly in March
American employers added 178,000 jobs last month, exceeding economists' projections, while the unemployment rate edged down to 4.3%, the Labor Department reported Friday.
Strikes and sector shifts drive gains
Analysts attributed part of the rebound to the resolution of healthcare-industry strikes that had depressed February payrolls. Yet hiring spread beyond hospitals and clinics, with construction and manufacturing also posting solid gains.
Financial services, media, and technology firms shed positions, as did government agencies.
Fed policy in focus amid inflation and geopolitical risks
The stronger-than-expected figures may reinforce the Federal Reserve's decision to delay interest-rate cuts. Policymakers have cited persistent inflation-still above the central bank's 2% target-as a key reason for caution.
"The economy is in a delicate balance," Fed Chair Jerome Powell said recently, noting modest job creation alongside relatively few layoffs.
Immigration crackdown and tariffs weigh on labor supply
White House policies, including tighter immigration rules and new tariffs, have contributed to a stagnant labor pool, economists say. The ongoing conflict between Israel and Iran adds another layer of uncertainty, particularly for energy prices.
Oil-price surge could dampen future growth
The Labor Department's survey period ended in mid-March, just weeks after hostilities began. Analysts warn that sustained oil-price increases could push up transportation and food costs, forcing households and businesses to cut back elsewhere.
"The question now is how much blowback we'll see from the Iran war and the energy-price volatility it creates," said Olu Sonola, head of US economics at Fitch Ratings.
Fed likely to maintain wait-and-see stance
Sonola described the March jobs report as "great" but cautioned that hiring has been volatile over the past year, reflecting broader business uncertainty. He expects the Fed to adopt a wait-and-see approach until the economic impact of the conflict becomes clearer.
"For the Fed, wait-and-see is the only sensible option at this point," Sonola said.
