March Jobs Report Shows Hiring Gradually Cooled

Strong job gains at service businesses—including restaurants, hospitals and nursing homes—are helping offset cuts at large companies in industries such as technology, finance and entertainment. 

Zoom Video Communications Inc. is laying off 1,300 employees, or 15% of its staff. Goldman Sachs Group Inc. plans to cut 3,200 jobs. Walt Disney Co. began laying off workers in late March. 

Weekly jobless claims, a proxy for layoffs, have risen from historic lows and job openings have declined, in signs of easing demand for workers as the labor market gradually cools.

“The great labor market machine is finally slowing down some, but it’s still got a lot of strength left,” said

Robert Frick,

corporate economist at Navy Federal Credit Union.

Employers in leisure and hospitality are in hiring mode as they continue to recover from steep job losses early in the pandemic. Hospitals, nursing homes and daycare centers are also trying to add workers after many employees quit or retired.

More people have joined the labor market, making it easier for employers to find workers and taking some pressure off wage growth, a factor driving high inflation.

Economists surveyed by The Wall Street Journal estimated that employers added 238,000 jobs in March and that the unemployment rate held at 3.6%.

Any impact from the failure of Silicon Valley Bank and subsequent financial turmoil won’t likely show up in March’s jobs data, which reflects hiring trends earlier in the month. Still, the banking stresses could trigger a further cooling in the job market in future months. 

Small businesses and consumers might find it harder to get loans, which could ultimately result in layoffs. Workers, meanwhile, could be more hesitant to search for new jobs.

The Fed has been trying to slow investment, spending and hiring to combat inflation. The central bank raised interest rates by a quarter-percentage-point at its meeting last month, marking its ninth consecutive rate increase. So far, businesses in many industries have continued to hire.

G & B Electric Inc., which installs electrical systems in buildings throughout southeast Michigan, is seeking to add 15 workers to its staff of 62, said Jim Gierlach, the company’s owner. 

Though the business has been able to find electrical apprentices, it has been a challenge to fill other roles. A job opening for a price estimator has gone unfilled for about a year. Experienced electricians are also difficult to come by, he said.

Mr. Gierlach has raised wages an average of 10% over the past year to attract workers and keep existing ones from leaving for jobs at other companies. His workers also need raises to help tackle higher prices, he said.

“They and their families are getting pinched by inflation in every aspect of life, whether it’s food or travel or housing, so they’re asking for more money,” he said.

Big wage gains have contributed to the run-up in inflation over the past couple of years, as some employers pass along price increases to offset higher labor costs. Though wage growth is still running above prepandemic levels, it has cooled in recent months, helping align with the Fed’s goal of lowering inflation. 

Advertisements for signing bonuses on Indeed.com are becoming less common in lower-wage sectors. That likely reflects easing labor shortages as more workers seek jobs, a shift from earlier in the pandemic when the share of Americans ages 25 to 54 remained depressed because of factors such as child-care disruptions, fear of Covid-19 and expanded government benefits. 

The job market is still tight, with the national unemployment rate hovering near half-century lows. 

In Green Bay, Wis., the jobless rate is even lower, at 2.5%. Many employers in the region are still struggling to tap talent, said Matt Sullivan, who co-owns an Express Employment Professionals staffing office in Green Bay.

Manufacturers in northeast Wisconsin are hot to hire workers, he said. Other companies are trying to fill positions in engineering, sales, human resources and finance. 

With such a small pool of unemployed job seekers to fill the abundant openings, Mr. Sullivan is busy seeking to recruit workers who already have jobs.

“The secret sauce is you have to pursue the people who are currently employed,” he said.

Write to Sarah Chaney Cambon at [email protected]

Strong job gains at service businesses—including restaurants, hospitals and nursing homes—are helping offset cuts at large companies in industries such as technology, finance and entertainment. 

Zoom Video Communications Inc. is laying off 1,300 employees, or 15% of its staff. Goldman Sachs Group Inc. plans to cut 3,200 jobs. Walt Disney Co. began laying off workers in late March. 

Weekly jobless claims, a proxy for layoffs, have risen from historic lows and job openings have declined, in signs of easing demand for workers as the labor market gradually cools.

“The great labor market machine is finally slowing down some, but it’s still got a lot of strength left,” said

Robert Frick,

corporate economist at Navy Federal Credit Union.

Employers in leisure and hospitality are in hiring mode as they continue to recover from steep job losses early in the pandemic. Hospitals, nursing homes and daycare centers are also trying to add workers after many employees quit or retired.

More people have joined the labor market, making it easier for employers to find workers and taking some pressure off wage growth, a factor driving high inflation.

Economists surveyed by The Wall Street Journal estimated that employers added 238,000 jobs in March and that the unemployment rate held at 3.6%.

Any impact from the failure of Silicon Valley Bank and subsequent financial turmoil won’t likely show up in March’s jobs data, which reflects hiring trends earlier in the month. Still, the banking stresses could trigger a further cooling in the job market in future months. 

Small businesses and consumers might find it harder to get loans, which could ultimately result in layoffs. Workers, meanwhile, could be more hesitant to search for new jobs.

The Fed has been trying to slow investment, spending and hiring to combat inflation. The central bank raised interest rates by a quarter-percentage-point at its meeting last month, marking its ninth consecutive rate increase. So far, businesses in many industries have continued to hire.

G & B Electric Inc., which installs electrical systems in buildings throughout southeast Michigan, is seeking to add 15 workers to its staff of 62, said Jim Gierlach, the company’s owner. 

Though the business has been able to find electrical apprentices, it has been a challenge to fill other roles. A job opening for a price estimator has gone unfilled for about a year. Experienced electricians are also difficult to come by, he said.

Mr. Gierlach has raised wages an average of 10% over the past year to attract workers and keep existing ones from leaving for jobs at other companies. His workers also need raises to help tackle higher prices, he said.

“They and their families are getting pinched by inflation in every aspect of life, whether it’s food or travel or housing, so they’re asking for more money,” he said.

Big wage gains have contributed to the run-up in inflation over the past couple of years, as some employers pass along price increases to offset higher labor costs. Though wage growth is still running above prepandemic levels, it has cooled in recent months, helping align with the Fed’s goal of lowering inflation. 

Advertisements for signing bonuses on Indeed.com are becoming less common in lower-wage sectors. That likely reflects easing labor shortages as more workers seek jobs, a shift from earlier in the pandemic when the share of Americans ages 25 to 54 remained depressed because of factors such as child-care disruptions, fear of Covid-19 and expanded government benefits. 

The job market is still tight, with the national unemployment rate hovering near half-century lows. 

In Green Bay, Wis., the jobless rate is even lower, at 2.5%. Many employers in the region are still struggling to tap talent, said Matt Sullivan, who co-owns an Express Employment Professionals staffing office in Green Bay.

Manufacturers in northeast Wisconsin are hot to hire workers, he said. Other companies are trying to fill positions in engineering, sales, human resources and finance. 

With such a small pool of unemployed job seekers to fill the abundant openings, Mr. Sullivan is busy seeking to recruit workers who already have jobs.

“The secret sauce is you have to pursue the people who are currently employed,” he said.

Write to Sarah Chaney Cambon at [email protected]