What's going on?

Data released on Friday showed that the US economy added 196,000 jobs in March � more than expected, and a rebound from last month�s surprisingly small number of new jobs.

What does this mean?

Most of the new jobs were added in healthcare and in professional and technical services (e.g. accountants and engineers) � as well as in construction, perhaps thanks to homebuilders� rising sales expectations. The biggest job losses were in manufacturing, despite higher activity last month � and in retail, which maybe pared back jobs in anticipation of fewer shoppers this year.


Average wages were 3.2% higher than a year ago � below forecasts and lower than in recent months. The slowdown could be partly explained by more technical workers being hired in March while retail jobs fell: minimum wage hikes from Amazon, Walmart, and now Target would�ve helped boost wage growth previously.

Why should I care?

For markets: Investors� jobs were buying stocks.

Investors bought up riskier stocks around the world on Friday and sold off safer US government bonds, perhaps to make room. A recovery in US job growth (March�s number of new jobs was nearly six times as many as February�s revised figure) despite snow disruption � without which jobs numbers might�ve been higher, according to Pantheon Macroeconomics � suggests the US economy is still strong. And slower-than-expected wage growth likely means less pressure on the US central bank to raise interest rates anytime soon � another likely reason for investors snapping up stocks.

The bigger picture: Something�s got to give.

The unemployment rate in March was steady at 3.8%, despite fewer people declaring themselves available to work. And last quarter, employers actually cut 36% more jobs than a year ago � the most in a single quarter since 2015. Labor shortages typically cause wage increases (cha-ching!). But eventually a lack of available workers can act as a bottleneck, slowing down companies� ability to invest in meeting demand � and leading to lower economic growth.