American workers saw rising wages in March, though the increases were lighter than expected and represented a deceleration from the prior month’s readings.
The Bureau of Labor Statistics on Friday released the March jobs report, which showed the U.S. economy added 178,000 jobs for the month – beating the expectations of economists polled by LSEG who anticipated a gain of 60,000 jobs.
The report found that average earnings increased 0.2% on a monthly basis and are 3.5% higher than a year ago. Those figures were both lower than expected, as the LSEG poll estimated earnings would be up 0.3% from the prior month and 3.7% compared with last year.
Those readings represented a slowdown in wage growth from the figures reported in February, when wages were up 0.4% from the previous month and 3.8% year over year.
Additionally, the report found that the average work week was shorter than expected at 34.2 hours, below the 34.3 reading in February that economists polled by LSEG expected would prevail in March as well.
The average hourly wage for private sector employees was $37.38 in March, up from $37.29 in February and $36.11 in March 2025.
EToro U.S. investment analyst Bret Kenwell noted that while the overall jobs report was “encouraging” and offered some reassurance about the labor market, he noted that wages were one of “a few softer details beneath the surface.”
“Average hourly earnings and hours worked both came in a bit light, arriving at a time when surging energy prices are effectively acting as an immediate gas-pump tax on consumers,” Kenwell said.
EY-Parthenon senior economist Lydia Boussour noted that average hourly earnings “lost momentum” in what was a “softer than expected outcome.”
“As wage and job gains moderate, rising gasoline prices are compounding the pressure by squeezing disposable incomes and further reducing household spending power. With labor market support already softer, this leaves the consumer outlook more fragile,” Boussour said.
She added that the firm expects “a largely frozen labor market in 2026, characterized by selective hiring, compressed wage growth and strategic workforce resizing as labor supply remains historically strained.”
