By Lily Martis
Spring is a time for growth, and even in today’s tough economic climate, that’s exactly what the labor market seems to be doing right now. Following a cold couple of months, the labor market flourished in March with the addition of 228,000 jobs, per the latest U.S. Bureau of Labor Statistics (BLS) jobs report. Healthcare remained the strongest source of job creation with social assistance, transportation, and retail also posting solid gains. Likewise, Monster saw a surge in employers hiring with the number of active job postings up 41% over the past month.
Despite these seemingly sunny job numbers, though, there are a few rain clouds that must be taken into consideration as well. Monster Economist Giacomo Santangelo says, “March’s surprisingly strong job growth of 228,000 positions reveals a complex labor market of paradoxes: robust healthcare hiring alongside rising unemployment, increased job creation with stagnant labor force participation, and growing sectors contrasted with federal government contraction.” Perhaps, he says, the labor market is more fragile than it appears.
Below, we shared our breakdown of these job numbers along with key takeaways to help employers plan for the months ahead.
The Unemployment Rate is Going Up, Up, Up
Even with strong job growth, the unemployment rate continued to increase, up 4.2% in March, according to the BLS monthly jobs report. Contributing to unemployment, job losses were seen in several sub-sectors, including general merchandise retailers (-5,000) and warehousing and storage (-9,000).
BLS job numbers also showed that the federal government shed 4,000 payrolls in March, following a loss of 11,000 in February, as President Donald Trump seeks to improve efficiency by reducing headcount. However, the BLS did note that workers on severance or paid leave were counted as employed. Meanwhile, a report from consultancy firm Challenger, Gray & Christmas showed that federal government layoffs have totaled more than 275,000 so far.
Healthcare Job Growth Consistently Strong
One thing we’ve come to count on: consistently strong job growth within the healthcare sector. In line with its average monthly gain, 54,000 healthcare jobs were added in March as the sector continued to lead the way in hiring in the BLS job reports for the sixth consecutive month.
Likewise, healthcare hiring continues to dominate Monster job boards. Active job postings for registered nurses remain #1 overall on site, while other top healthcare positions hiring include:
- Critical care nurses (#3 overall)
- Physical therapists (#5 overall)
- Radiologic technologists (#9 overall)
Looking ahead, Santangelo says, “The future looks bright for healthcare employment as Baby Boomers enter the ‘high-care-need’ years, technological advancements create new specialized roles, and care delivery shifts increasingly to community and home-based settings. This explains why registered nurses and critical care nurses represent a large portion of the job listings on Monster, making healthcare not just a temporary employment leader but a fundamental and expanding employment sector looking to the future.”
Social Assistance Employment Rises Amid Economic Uncertainty
Both the BLS monthly jobs report and Monster showed strong growth within the social assistance sector in March. Gains of 24,000, primarily in individual and family services, were reported by the BLS, while the number of active jobs posted within the sector increased 24% over the month on Monster. Monster’s top active social assistance roles hiring include:
- Military-related positions
- Mental health counselors
- Healthcare social workers
Given today’s tough social and economic conditions, it’s not surprising that the sector continues to be a solid provider of jobs. “Social assistance employment is growing due to continued economic uncertainty, which increases demand for support services, policy shifts toward community-based care, and changing demographics, creating new care needs for both aging adults and more vulnerable populations,” Santangelo says. “We should not be surprised to see this sector remain strong in 2025 as these trends accelerate alongside increased investment in mental health services and integrated care models.”
Transportation and Warehousing Employers Shift Focus
Nearly doubling its average monthly gain, hiring accelerated in March with gains of 23,000, largely seen in truck transportation and couriers and messengers, according to the BLS monthly jobs report. These gains, however, were offset by a loss of 9,000 payrolls as employers pumped the brakes on warehouse and storage hiring.
“Transportation employment is surging due to expanding e-commerce and rebounding manufacturing and construction activity,” Santangelo says. “Meanwhile, warehousing and storage is losing jobs as companies implement strategic shifts prioritizing movement of goods over storage to reduce inventory costs during economic uncertainty.”
Monster job numbers also reflect this shift in hiring. Following a 42% increase in February, Monster job postings within the sector increased by another 36% in March. Jobs for heavy and tractor-trailer truck drivers remain the #2 job posting overall on Monster, while other top transportation jobs hiring include:
- Light truck or delivery service drivers
- Laborers and freight, stock and material movers
Meanwhile, job search activity for “warehouse” positions increased over the past month on Monster, likely a result of the loss reported by the BLS.
Retail Jobs Rebound Following Strike
Following strike activity that resulted in a loss of 15,000 workers within food and beverage retail earlier this year, the BLS monthly jobs report showed that employment rebounded with gains of 24,000 as employees went back to work.
Looking ahead, Monster data suggests that hiring may even pick up in the months to come. In March, the number of retail job postings increased 34% with top active jobs hiring including:
- Sales representatives
- Retail salespersons
- Cashiers
From a candidate standpoint, top positions being searched on Monster include retail, sales, and customer service jobs.
Wage Increases Decelerate as Workforces Stabilize
Average hourly earnings rose 0.3% in March or 3.8% over the past year, according to the BLS monthly jobs report. While this growth remains strong, continuing to outpace inflation (2.8%), it has decelerated since reaching its peak three years ago amid the “Great Resignation” when job openings outnumbered the unemployed by 2 to 1.
Given today’s economic uncertainty, the level of open positions is now almost even with available workers as workforces stabilize and employers shift their focus from talent acquisition to retention. With this, a report from global advisory, broking and solutions company WTW found that employers are being more conservative with salary budgets, which are expected to rise 3.9% in 2025, down from 4.1% in 2024 and 4.5% in 2023. In prioritizing employee retention, Monster’s Work Watch report also found that employers plan to offer more robust benefits that promote longevity in the workplace, such as increased paid time off, healthcare, remote flexibility, and family/child care support.
Looking Ahead: How Tariffs May Impact Hiring and Employment
Employers were largely optimistic heading into 2025 with 67% planning to continue to hire and fill roles, according to Monster’s Future of Work survey. However, as the trade war progresses, tariffs are beginning to impact employers’ hiring plans for this year. A recent survey conducted by Duke University, shows that about 1 in 4 companies have started to scale back hiring plans due to tariff concerns.
In addition to reduced hiring, an increase in layoffs is highly probable following the “Liberation Day” tariffs. According to the Tax Foundation, these tariffs could reduce hours worked equivalent to 142,000 full-time jobs. “While job losses will likely be concentrated initially in trade-dependent sectors,” Santangelo says, “the ripple effects through the economy could be substantial as consumer spending weakens and business investment plans are curtailed, with small businesses most vulnerable to laying off workers due to their limited ability to absorb higher input costs or quickly restructure operations.”
Stay Tuned for the Next Monthly Hiring Trends Report
Monster aims to provide employers with the insight needed to move forward. As you plan your hiring strategy over the next month, check out Monster’s 2025 Work Watch report for the latest hiring trends and insights. We’ll see you here again in May when we will release our next take on the monthly jobs report.