Actalent Labor Market and Economy Report: A Look at Trends in March 2026

Eliza Hetrick, Actalent Market Research Analyst

U.S. employment increased by 178,000 jobs in March, rebounding from job losses in February and exceeding expectations.

By industry, job gains were largely concentrated among health care (+76,000 jobs) and construction (+26,000) as the sectors recovered their workforces following a health care strike and harsh winter weather in February. Transportation and warehousing also saw meaningful job growth (+21,000 jobs), while noticeable declines were observed in federal government (-18,000) and financial activities (-15,000).

Revisions to prior months underscore recent volatility in the labor market: February’s employment decline was revised down from -92,000 to -133,000, while January’s gain was revised up from 126,000 to 160,000.

Average hourly earnings rose 3.5% year-over-year in March, down sharply from 3.8% in February but still above pre-pandemic growth. In the months leading up to the onset of COVID-19 (December 2019–February 2020), wage growth held steady at 3.0%.

Labor Market Overview: March 2026

178K
Jobs Gained in March

U.S. employment increased by 178,000 jobs in March, rebounding from job losses in February and exceeding expectations.

61.9%
Labor Force Participation Rate

Labor force participation edged down to 61.9% in March, remaining well below the pre-pandemic level of 63.3%. Participation among prime age workers (ages 25-54) was 83.8%, near its strongest level since the mid 2000s.

4.3%
Unemployment Rate

The unemployment rate declined 0.1% in March to 4.3%. Unemployment rates close to 4.0% suggest a relatively limited supply of available jobseekers.

1.7M
February Layoffs

Layoffs were unchanged at 1.7 million between January and February, after January’s figure was revised up from 1.6 million. Quits declined from 3.1 million to 3.0 million. Quits and layoffs data lag one month behind other employment data.

Source: Bureau of Labor Statistics' Employment Situation Summary