RE:RE:RE:CAD falls vs USD as job numbers surprise Jobs grew at a brisk pace in March, but wage growth was contained, confirming a belief among economists that the U.S. can continue to expand employment without fanning inflation.
U.S. employers added a seasonally adjusted 303,000 jobs in March, the Labor Department reported Friday, significantly more than the 200,000 economists expected. The unemployment rate slipped to 3.8%, versus February’s 3.9%, in line with expectations.
Average hourly earnings rose 4.1% from a year ago, the smallest gain since June 2021.
Investors have been on edge recently over economic data suggesting that Federal Reserve interest-rate cuts might not be imminent. The strength of Friday’s report feeds into those concerns—though that is less because it stirs worries of inflation, and more because it leaves the central bank comfortable with its wait-and-see stance on interest rates.
All three U.S. stock indexes were up Friday after a lackluster week, with investors choosing to focus on the strength of the economy rather than what the report might mean for the Fed.
For most of 2022, senior Fed officials saw strong economic activity and hiring as a headwind to bringing down inflation. They worried that tighter labor markets would keep pressure on wages and, in turn, prevent inflation from falling all the way back to the Fed’s 2% goal in a reasonable amount of time. Investors tended to view good jobs news as bad for the market.