The labor market showed renewed vigor in March as hiring surged while job openings held steady, according to the Job Openings and Labor Turnover Survey released Tuesday by the Bureau of Labor Statistics.
Employers added 5.6 million hires during the month, up 655,000 from February and more than reversing the prior month’s decline. The hires rate jumped to 3.5 percent from 3.1 percent. The gains were broad-based, with notable increases in transportation, warehousing, and utilities (+108,000), professional and business services (+165,000), and accommodation and food services (+124,000).
The hiring surge is consistent with the March employment report, which showed nonfarm payrolls rising by 178,000 and the unemployment rate ticking down to 4.3 percent from 4.4 percent. Together, the two reports paint a picture of a labor market that strengthened over the course of the month.
Job openings were essentially unchanged at 6.9 million on the last business day of March, showing no deterioration in employer demand for workers. While openings in professional and business services fell by 318,000, that decline was offset by gains elsewhere, including a 98,000 increase in finance and insurance and advances in retail trade and health care.
The quits rate ticked up to 2.0 percent from 1.9 percent, suggesting a slight improvement in worker confidence. Layoffs and discharges were little changed at 1.9 million, remaining low by historical standards.
Federal government hiring fell to 19,000, with the hires rate dropping to 0.7 percent, consistent with the administration’s effort to reduce the size of the federal workforce. The March payrolls report showed federal employment declining by 18,000.
The April jobs report is due Friday. Economists surveyed by Bloomberg expect a 65,000 increase in payrolls.
Read the full article here