The participation rate, or share of working-age peoplein the labor force, decreased and faces continued downward pressureas older workers retire. (Photo: Shutterstock)

(Bloomberg) –U.S. hiring rebounded more than forecast in Marchand the prior month was stronger than first reported, potentiallyrelieving some concerns about a cooling economy. Wage gains eased and the unemployment rate heldnear a 49-year low.

Payrolls rose

Payrolls rose 196,000 after a 33,000 advance, a Labor Departmentreport showed Friday. The median estimate in a Bloomberg survey sawan increase of 177,000 after an initially reported 20,000 gain inFebruary. Treasury yields pared their gains briefly, but recoveredto pre-report levels. U.S. stock futures advanced.

The jobless rate was unchanged at 3.8 percent, while averagehourly earnings increased 3.2 percent from the prior year, belowall estimates and down from the best pace of the expansion.

The data signal the labor market is solid enough to supporteconomic growth in coming months even if job gains are moderatingfrom last year's pace.

Unemployment near historic lows bodes well for consumerspending, though weaker wage gains suggest inflation will be evenmore muted as Fed policy makers wait to see how the U.S. economyweathers a global slowdown.

“This a perfect report for the Fed because it actuallycorroborates what they've been saying all along, which is there areno wage pressures,” Subadra Rajappa, head of U.S. rates strategy atSociete Generale SA, said in a Bloomberg Television interview.“There's very little risk of wage inflation.”

The data come as investors expect an interest-rate cut this yearafter four hikes in 2018. The Fed early in 2019 removed projectionsfor rate rises in the near term while flagging increasing economicrisks amid slowing global growth.

Payroll gains were led by education and health services as wellas professional and business services. Construction payrollsrebounded with a 16,000 gain while manufacturing continued toweaken with a loss of 6,000 jobs, the first decline since mid-2017.Other data had earlier shown a mixed picture for factoryemployment.

Participation rate declined

The participation rate, or share of working-age people in thelabor force, decreased to 63 percent from 63.2 percent the priormonth. The rate, which faces continued downward pressure as olderworkers retire, had ticked up in recent months as increasedemployer demand has pulled in more Americans.

Combined revisions for January and February added 14,000 morejobs than previously reported, though the three-month averagedecreased to 180,000 from 191,000.

Average hourly earnings rose 0.1 percent from the prior month,missing estimates, following a 0.4 percent gain. A longer workweekmay also have had an impact on wages: The average for allprivate employees increased to 34.5 hours from 34.4 hours. A longerworkweek tends to reduce average hourly pay.

Other details

The U-6, or underemployment rate, held at 7.3 percent; the gaugeincludes part-time workers who'd prefer a full-time position andpeople who want a job but aren't actively looking. Privateemployment also rebounded to show a 182,000 gain after an upwardlyrevised 28,000 increase; government payrolls expanded by14,000.

READ MORE:

These cities are leading the nation in wagegrowth

DOL tweaks definition of 'regular payrate'

10 most in-demand jobs

Copyright 2019 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.