Analysis: The stronger-than-expected rebound in US employment in March may further strengthen the Federal Reserve's focus on inflation risks.

U.S. job growth rebounded more than expected in March, driven by the end of a healthcare strike and warmer temperatures, while the unemployment rate fell to 4.3%. However, downside risks to the labor market are rising amid uncertainty surrounding the war with Iran. The closely watched jobs report released Friday by the Bureau of Labor Statistics showed that nonfarm payrolls increased by 178,000 last month, far exceeding market expectations of 60,000 and marking the largest increase since the end of 2024. February's figure was revised down to a decrease of 133,000. The March unemployment rate was 4.3%, also lower than market expectations. Economists generally expected a rebound in the job market in March after the strikes ended. The sharp drop in the unemployment rate was due to the loss of more than 30,000 healthcare workers in February and the harsh winter weather. This strong growth could further reinforce the Federal Reserve's concerns about inflation risks, as rapidly rising energy prices triggered by the Middle East war have exacerbated these concerns. Wage growth was primarily driven by employment in the healthcare sector, which recovered after the strikes ended. The construction, leisure and entertainment, and hospitality industries also rebounded after declines in February, likely reflecting a weather-related economic recovery. (Golden Ten)