US Job Creation Rate Slumps

The jobs boom in the US slowed in March, but the unemployment rate remained low, the Labor Department has said.

This comes as the world’s largest economy remained resilient in the face of sharply higher borrowing costs.

Employers added 236,000 jobs in March, the Labor Department added, fewer than in February but close to expectations.

At 3.5%, the jobless rate remained near historic lows.

The data is being closely watched as the US central bank raises interest rates to stabilise soaring prices.

Raising rates makes borrowing more expensive. It means businesses borrow less, making them less likely to create jobs or even cut staff.

However, the US labour market has defied expectations of a slowdown so far.

Employers have added more than 330,000 jobs monthly on average over the last six months and job openings have outstripped the workers available.

Analysts said the latest report from the US Labor Department suggested conditions may be starting to change, noting job declines in the construction, manufacturing and retail sectors.

The increase in wages also eased, with average hourly earnings rising by 4.2% over the year to March. This is below the 4.6% increase in February and the lowest since mid-2021.