The U.S. job market has rebounded significantly after February’s steep losses.
According to a release released Friday morning by the Bureau of Labor Statistics, the country created 178,000 jobs in March, after losing 133,000 positions the previous month. Economists predicted the creation of 60,000 jobs.
The unemployment rate fell to 4.3% compared to 4.4% in February and 4.4% expected.
At least part of that increase was due to a significant downward revision of February’s data from an initially reported decline of 92,000.
Trading quietly near the $67,000 level in the hours leading up to the data release, Bitcoin remained there in the minutes following the report.
U.S. stock index futures remained slightly lower, with the Nasdaq 100 down 0.2%. The 10-year U.S. Treasury yield jumped four basis points to 4.36%.
In recent times, expectations about the future path of interest rates have been much more influenced by events in the Middle East and the price of crude oil than by prospects for domestic economic growth.
Just last week, surging oil prices led markets to predict imminent rate hikes from the U.S. Federal Reserve. However, earlier this week, Fed Chairman Jerome Powell said the central bank recognizes that oil price shocks – even if they initially worsen overall inflation figures – can depress economic activity. He said the Fed would be in no rush to raise rates in response to short-term fluctuations in crude oil prices.
This morning’s strong pace suggests growing momentum in the economy, perhaps putting rate hikes back on the table in 2026.
