(NEW YORK) — U.S. hiring surged in March, blowing past economists’ expectations and defying concern on Wall Street about a possible economic recession, government data on Friday showed.
The U.S. added 228,000 jobs in March, according to data from the U.S. Bureau of Labor Statistics. That figure marked a major increase from hiring in the previous month.
The fresh report provided a snapshot of staff cuts imposed by the federal government last month amid cost-cutting efforts undertaken by the Department of Government Efficiency.
Despite escalating trade tensions and market turbulence since Trump took office in January, the economy remains in solid shape by several key measures.
The unemployment rate stands at a historically low level. Meanwhile, inflation sits well below a peak attained in 2022, though price increases register nearly a percentage point higher than the Fed’s goal of 2%.
“The economy is strong,” Fed Chair Jerome Powell said at a press conference in Washington, D.C., last month.
Tariffs announced earlier this week, however, threaten to derail hiring and worsen inflation, multiple analysts previously told ABC News.
The far-reaching levies increase the likelihood of a recession by driving up prices, sapping consumer spending, slowing business activity and risking layoffs, they said.
The White House plans to slap a 10% tax on all imported products and place additional duties on items from some of the largest U.S. trading partners, including China and the European Union.
“These policies, if sustained, would likely push the U.S. and global economy into recession this year,” J.P. Morgan said in a note to clients after the tariff announcement.
“Recession risks will likely rise,” Deutsche Bank added.
U.S. stocks plunged on Thursday in the first trading session after Trump unveiled the new tariffs.
The Dow Jones Industrial Average plummeted 1,679 points, or nearly 4%, while the tech-heavy Nasdaq declined almost 6%.
The S&P 500 tumbled 4.8%, marking its worst trading day since 2020.
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