WASHINGTON — America’s employers delivered another outpouring of jobs in March, adding a sizzling 303,000 workers to their payrolls and bolstering hopes that the economy can vanquish inflation without succumbing to a recession in the face of high interest rates.
Normally, a blockbuster bounty of new jobs would fan worries that a vibrant labor market would force companies to sharply raise pay to attract and keep workers, thereby fanning inflation pressures. But the March jobs report showed that wage growth was mild last month, which might allay any such fears. Average hourly wages were up 4.1% from a year earlier, the smallest year-over-year increase since mid-2021. From February to March, though, hourly pay did rise 0.3% after increasing 0.
“My plan is growing the economy from the middle out and the bottom up, investing in all Americans and giving the middle class a fair shot,’’ he said. “"Inflation has come down significantly. We’ve come a long way, but I won’t stop fighting for hard-working families.'' Four years after the pandemic curtailed travel and forced shutdowns of restaurants, bars and entertainment venues, those industries have finally regained their pre-pandemic employment level after a category that includes such businesses added 49,000 jobs in March.
The much higher borrowing costs for individuals and companies that resulted from the Fed’s rate hikes were widely expected to trigger a recession, with waves of layoffs and a painful rise in unemployment. Yet to the surprise of just about everyone, the economy has kept growing steadily and employers have kept hiring at a healthy pace. Layoffs remain low.
Noting the strong job growth, influx of new workers, declining unemployment and slowing wage growth, she said, “It suggests that the Fed can walk and chew gum at the same time, bringing down inflation without crippling the labor market.”
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