In March, the US economy added 228,000 jobs, significantly exceeding expectations, as it recovered from the substantial federal workforce reductions initiated by the Trump administration.
This number represents an increase from an adjusted total of 117,000 jobs added in February. The unemployment rate saw a slight uptick to 4.2%.
Economists had predicted an addition of 140,000 jobs for March 2025, indicating a minor decline from February and a continued dip from the 12-month average of 167,000 jobs per month. Payroll company ADP reported an addition of 155,000 jobs in the private sector for March 2025.
This report follows Donald Trump’s announcement of a remarkable new trade policy, imposing tariffs on all US trading partners ranging from 10% to 50%. The effects of this decision may take months to be reflected in job statistics.
“EXCELLENT JOB NUMBERS, MUCH BETTER THAN EXPECTED. IT’S ALREADY WORKING. HANK TOUGH, WE CAN’T LOSE!!!” Trump proclaimed on Truth Social.
In Canada, facing the threat of Trump tariffs since November, employment declined by 32,600 positions, marking the first drop in over two years.
The employment gains for March were largely attributed to sectors such as health care, social assistance, transportation and warehousing, and retail. However, federal employment fell by 4,000 in March, following a loss of 11,000 jobs in February.
Despite the robust growth in March, a revision reflected a reduction of 48,000 in gains for the previous two months. Moreover, there are indications that the resilience of the US job market is facing challenges beyond these official figures.
The outplacement firm Challenger, Gray & Christmas revealed that US employers announced 275,240 job cuts in March 2025, spurred in part by actions from Elon Musk’s “department of government efficiency,” representing a 60% increase from the previous month and the third-highest count ever noted since the firm began tracking job cuts in 1989.
Among the major job cuts announced was Cleveland-Cliffs, a steel producer, which plans to lay off 1,200 workers in Michigan and Minnesota due to reduced demand in the automotive sector.
Whirlpool has also announced 650 job cuts at a manufacturing facility in Iowa. Chip manufacturer Wolfspeed said it would reduce its workforce by 180 in North Carolina. Milgard Manufacturing plans to close a factory in Ventura, California, resulting in 397 job losses by May 2025. Additionally, aerospace contractor SPS Technologies issued a Worker Adjustment and Retraining Notification for 251 layoffs from a Pennsylvania facility in May 2025.
Despite the ongoing uncertainties surrounding Trump’s policies, including tariffs and reductions in the federal workforce and funding programs, the US economy has continued to expand. However, consumer confidence fell to a 12-year low in March 2025.
