Hiring across the U.S. rebounded in March after falling sharply the previous month, with employers adding 178,000 jobs, according to new data from the Department of Labor.

By the numbers

The March employment report beat consensus economic forecasts of 60,000 payroll gains last month, according to FactSet.

The unemployment rate dipped to 4.3% in March, down from 4.4% in the prior month.

The latest payroll gains mark a sharp reversal from February, when employers unexpectedly cut jobs amid signs of a slowing labor market. Friday’s report revised the reduction to 133,000, far larger than the 92,000 originally reported. February’s weak numbers were partially due to strikes in the health care industry and winter storms.

Job growth has been mixed this year, with employers adding an average of 68,000 jobs per month from January to March.

While Friday’s employment report signals a rebound last month, Americans are expressing dim views about the strength of the labor market. A recent Gallup poll from the end of 2025 found that 72% of Americans said it was a bad time to find a job, up from 54% a year earlier.

Higher energy prices due to the Iran war could push firms to curb hiring later this year and potentially boost layoffs, James McCann, senior economist of investment strategy at Edward Jones, said in an email ahead of the government’s latest jobs readout. 

Fuel costs have shot up since the U.S. and Israel attacked Iran on February 28, with domestic gasoline prices jumping above $4 a gallon and oil topping $100 a barrel.

Layoffs remain relatively muted for now. A recent report from outplacement firm Challenger, Gray & Christmas found that employers cut roughly 60,000 jobs in March, up from February but down year over year.