US employers add 178,000 jobs in March, rebounding from weak February

Unemployment rate dips to 4.3%, but uncertainty over Iran war and oil prices cloud outlook

Apr. 3, 2026 at 10:51pm

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A geometric abstract illustration composed of overlapping triangles, rectangles, and circles in shades of blue, red, and yellow, conceptually representing economic data and trends without literal depictions.The March jobs report reflects a complex economic landscape, with hiring gains tempered by uncertainty over the impact of the Iran war and rising energy costs.NYC Today

American employers added a surprisingly strong 178,000 new jobs in March, rebounding from a loss of 133,000 jobs in February. The unemployment rate also dipped to 4.3%. However, uncertainty surrounding the war with Iran and its impact on energy prices is clouding the outlook for the labor market.

Why it matters

The March jobs report provides a positive sign for the US economy, but concerns remain about the potential fallout from the ongoing conflict with Iran and rising energy prices. The data reflects a mixed picture, with strong hiring in some sectors offset by worries about the broader economic impact of geopolitical tensions.

The details

The Labor Department reported that the job gains were about three times what economists had forecast. Health care companies added 76,400 jobs, factories added 15,000, and construction companies added 26,000. However, the labor force dropped by 396,000, causing the labor force participation rate to decline. Average hourly wages were up 0.2% from February, but the 3.5% year-over-year gain was the smallest since May 2021.

  • The Labor Department reported the jobs data on Friday, April 3, 2026.
  • The job losses in February totaled 133,000.
  • The unemployment rate was 4.4% in February and dipped to 4.3% in March.

The players

Labor Department

The US government agency that tracks and reports on employment data.

Thomas Simons

Chief US economist with the investment firm Jefferies.

Diane Swonk

Chief economist at the accounting firm KPMG.

Stephen Brown

Chief North America economist at Capital Economics.

Olu Sonola

US head of research at Fitch Ratings.

Mai Truong

Founder of Bo & Mei, a company that makes games and puzzles celebrating Asian heritage.

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What they’re saying

“The data is mostly backward-looking, and likely does not incorporate any impact from the recent rise in energy prices, or other risks related to the war in Iran.”

— Thomas Simons, Chief US economist

“But those are now being eaten up by higher energy costs.”

— Diane Swonk, Chief economist

“The larger-than-expected rebound in nonfarm payrolls in March mainly reflects a reversal of the strike and weather effects that weighed on hiring in February, rather than being a sign that the labor market is rapidly gaining momentum.”

— Stephen Brown, Chief North America economist

“It's the nature of uncertainties. Companies typically respond by holding back on hiring decisions.”

— Olu Sonola, US head of research

“It makes everything feel very uncertain. On the other hand, there's so little you can do with the volatility. You just have to stay the course and kind of deal with the variables as they become more clear.”

— Mai Truong, Founder

What’s next

The Federal Reserve will likely take a cautious approach to interest rate decisions as they assess the impact of the Iran war and rising energy prices on the broader economy.

The takeaway

The March jobs report provides a mixed picture, with strong hiring in some sectors offset by concerns about the potential fallout from geopolitical tensions and their impact on energy prices and consumer spending. Businesses are facing heightened uncertainty, which could lead to more cautious hiring in the months ahead.