March Jobs Report: 178K Payrolls Added, Unemployment Falls to 4.3%; February Revised Down 130K

The Bureau of Labor Statistics released the March 2026 Employment Situation Summary on April 3. Nonfarm payrolls increased 178,000 in March — a solid headline beat driven by gains in healthcare (+57K), construction (+32K), and transportation and warehousing (+28K). The unemployment rate fell one tenth of a percentage point to 4.3% from February's 4.4%, the first improvement in three months. However, the report contained a significant downside revision: February payrolls were revised down by 130,000 to a net loss of 92,000 jobs — the first monthly payroll decline since the 2020 COVID crash — dramatically worsening the picture of late-winter labor market conditions. The ADP National Employment Report (released April 1) had already flagged weakness, showing only 62,000 private-sector jobs added in March with annual pay growth at 4.5%. Taken together, the data showed a sharply bifurcated labor market: the headline March print was encouraging but February's payroll collapse (now confirmed with revisions) implied the economy was already slowing materially at the start of Q1 2026. Average hourly earnings rose 0.3% month-over-month and 4.1% year-over-year, still running above the pace consistent with 2% inflation given current productivity trends. The jobs report was overshadowed by the market crash and tariff news.