February data was revised up to show 750,000 jobs added instead of the 678,000 previously reported. Economists polled by Reuters had forecast a payroll increase of 490,000 positions. Estimates ranged from 200,000 to 700,000.
The unemployment rate fell to 3.6%, the lowest level since February 2020, and compares with 3.8% in February.
The report underscored the strong momentum in the economy, which is facing growing headwinds from inflation, tightening monetary policy and Russia’s war against Ukraine, which is further straining global supply chains and increasing price pressures.
Last month, the Fed raised its policy rate by 25 basis points, the first hike in more than three years.
Monetary policymakers have stepped up their hawkish rhetoric, with Fed Chairman Jerome Powell saying the US central bank must move “quickly” to raise rates, and possibly “more aggressively.” to prevent high inflation from embed.
The March employment report and consumer price data to be released on April 12 will be crucial for the Fed’s rate decision at its May 3-4 monetary policy meeting.
