U.S. Adds 178,000 Jobs in March as Unemployment Holds Steady at 4.3 Percent
April 3, 2026 – Employment increased by 178,000 in March as the U.S. unemployment rate changed little to 4.3 percent, according to the most recent U.S. Bureau of Labor Statistics report. The number of unemployed people, at 7.2 million, changed little in March. Job gains occurred in healthcare, in construction, and in transportation and warehousing. Federal government employment continued to decline.
“March’s report showed stronger gains than anticipated, offering an early signal that employers may be moving ahead with hiring plans more decisively than earlier in the quarter,” said Ger Doyle, regional president, North America at ManpowerGroup. “While many job seekers may not be feeling the shift yet, more sectors are beginning to open roles again as hiring activity steadies.”
“But while the gain in nonfarm employment came in well above forecast, the healthcare and social assistance sector did much of the heavy lifting,” said Laura Ullrich, director of economic research at Indeed Hiring Lab. “The broader story of 2026 so far remains one of recalibration rather than acceleration. Slowing population growth, a steep drop in immigration and declining labor force participation mean the economy simply doesn’t need to produce the job gains of prior cycles to keep unemployment stable.”
Among the major worker groups, the unemployment rate for people who are Asian (3.7 percent) decreased in March. The jobless rates for adult men (3.8 percent), adult women (4.0 percent), teenagers (13.7 percent), and people who are White (3.6 percent), Black (7.1 percent), or Hispanic (4.8 percent) showed little change over the month.
The number of long-term unemployed (those jobless for 27 weeks or more) changed little at 1.8 million in March but is up by 322,000 over the year. The long-term unemployed accounted for 25.4 percent of all unemployed people in March. Both the labor force participation rate, at 61.9 percent, and the employment-population ratio, at 59.2 percent, changed little in March. These measures also showed little change over the year, after accounting for annual population control adjustments.
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The number of people employed part time for economic reasons, at 4.5 million, changed little in March. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. The number of people not in the labor force who currently want a job changed little at 6.0 million in March. These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job.
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Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force increased by 325,000 in March to 1.9 million. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the four weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, increased by 144,000 in March to 510,000.
Where Job Growth Occurred
- Healthcare added 76,000 jobs in March. Employment in ambulatory health care services rose by 54,000, reflecting an increase of 35,000 in offices of physicians as workers returned from a strike. Employment also increased in hospitals (+15,000). Over the prior 12 months, healthcare had added an average of 29,000 jobs per month.
- Employment in construction grew by 26,000 in March but had shown little net change over the prior 12 months.
- In March, transportation and warehousing added 21,000 jobs, reflecting a gain in couriers and messengers (+20,000). Employment in transportation and warehousing is down by 139,000 since reaching a peak in February 2025.
- Employment in social assistance continued its upward trend in March (+14,000), primarily in individual and family services (+11,000).
- Federal government employment continued to decline in March (-18,000). Since reaching a peak in October 2024, federal government employment is down by 355,000, or 11.8 percent. Federal employees on furlough during the partial government shutdown were counted as employed in the establishment survey because they worked or received (or will receive) pay for the pay period that included the 12th of the month.
- Employment in financial activities edged down by 15,000 in March, reflecting a loss in finance and insurance (-16,000). Employment in financial activities is down by 77,000 since reaching a peak in May 2025.
- Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade; information; professional and business services; leisure and hospitality; and other services.
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Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
