Washington (Reuters) - U.S. employment increased solidly in March and wages rebounded, underscoring the economy's resilience, but the Federal Reserve is expected to remain cautious in raising interest rates this year due to slowing global growth.
Nonfarm payrolls increased 215,000 last month, the Labor Department said on Friday. Data for January and February were revised slightly down to show 1,000 fewer jobs created than previously reported.
Washington (Reuters) - U.S. employment increased solidly in March and wages rebounded, underscoring the economy's resilience, but the Federal Reserve is expected to remain cautious in raising interest rates this year due to slowing global growth.
Nonfarm payrolls increased 215,000 last month, the Labor Department said on Friday. Data for January and February were revised slightly down to show 1,000 fewer jobs created than previously reported.
Average hourly earnings increased seven cents. While the unemployment rate rose to 5.0% from an eight-year low of 4.9%, it was because more Americans continued to return to the labor force, a sign of confidence in the jobs market.
Labor Overcoming Headwinds
The labor market has largely shrugged off slowing global economic growth, a robust U.S. dollar that has hurt manufacturing exports, and cheap oil prices, which have hit energy sector profitability.
March's strong employment report will likely have little impact on monetary policy in the near-term, with the Fed appearing to be more focused on international developments.
Treasury Bond Prices Fall
"It was another solid report. As far as the Fed is concerned, it doesn’t change anything for them. I think given what we heard this week from (Fed Chair Janet) Yellen ... their focus is elsewhere," said Curtis Long, chief economist at the National Association of Federal Credit Unions in Washington.
Yellen said on Tuesday that slowing world growth and lower oil prices posed a downside risk to the U.S. economic outlook, adding that she considered it appropriate for policymakers to "proceed cautiously in adjusting policy."
Fed Forecast Sees Two Hikes
Fed officials last month downgraded their economic growth expectations and forecast only two more rate hikes this year. The U.S. central bank raised its benchmark overnight interest rate in December for the first time in nearly a decade.
Financial markets see a 30% chance of a hike at the Fed's June policy meeting, a 50 percent chance of such a move in September and a 64% probability at the December meeting, according to CME FedWatch.
Economists polled by Reuters had forecast nonfarm payrolls increasing 205,000 in March and the unemployment rate holding steady at 4.9%.
U.S. Treasury prices fell after the data as did short-term interest rate futures. The dollar rose against a basket of currencies, while U.S. stock index futures slightly pared losses.
The employment report came on the heels of recent data showing sluggish consumer spending and weak business investment on capital in the first two months of the year, as well as some deterioration in the international trade balance.