U.S. Economy Shed 108,000 Jobs in March; Unemployment Rate Unchanged

During March, the U.S. job market shrank by 108,000 jobs, the Labor Department said Friday.

The unemployment rate held steady at 5.8%, despite the steep decline in payrolls, Labor said.

Analysts said that the softening in the labor market in March was due primarily to concern about the war and subsequent weakening economic growth, Bloomberg reported.

The Labor Department also revised is February payrolls loss downward to a loss of 357,000 jobs.

The loss of more than 460,000 jobs over two months may prompt the Federal Reserve to cut its benchmark interest rate from its current four-decade low of 1.25%, analysts told Bloomberg. The central bank is slated to meet on May 6, but may agree to trim rates before then, Bloomberg said.

Manufacturers shed 36,000 jobs last month – their 32nd decline in a row, Labor said. The number of house in the manufacturing workweek held fast at 40.8 hours, while overtime fell to 4.1 hours from 4 hours in April

Incomes rose 0.1% in March, Labor said, after a 0.6% increase in February Average weekly income to 517.93 from $514 an hour.