US Economy Gains 431,000 Job in March

The US recorded strong jobs growth in March as higher wages lured more workers back to the labour force, giving the Federal Reserve another data point to support an aggressive tightening policy to help ease inflation. The report, which showed the world's largest employer adding 431,000 jobs in March, was slightly below Bloomberg's forecast, however it still indicated a substantial increase in what many deemed to be a tight labour market. Further to this news, the unemployment rate dropped 0.2% from February to 3.6%, making it the lowest level since before the pandemic. January and February farm payrolls were also revised higher, further cementing the view that the US economy is headed towards a full recovery. Economists believe this solidifies the case for a 50 basis point rate rise by the Fed at their next meeting.