U.S. jobs report shows 178,000 workers were hired in March. But hiring boomlet is unlikely to last.

U.S. payrolls rose 178,000 in March and the unemployment rate fell to 4.3%, a firmer-than-expected labor-market print. The resilience in jobs despite Iran-war uncertainty raises the risk of sustained inflationary pressure and could reinforce hawkish Fed expectations, putting upward pressure on rates and Treasury yields.

Analysis

U.S. payrolls rose 178,000 in March and the unemployment rate fell to 4.3%, a firmer-than-expected labor-market print. The resilience in jobs despite Iran-war uncertainty raises the risk of sustained inflationary pressure and could reinforce hawkish Fed expectations, putting upward pressure on rates and Treasury yields.