March Jobs Report to Show Whether Hiring Boom Continued

Strong job gains at service businesses—including restaurants, hospitals and nursing homes—are helping offset cuts at large companies in industries such as technology, finance and entertainment. 

Zoom Video Communications Inc. is laying off 1,300 employees, or 15% of its staff. Goldman Sachs Group Inc. plans to cut 3,200 jobs. Walt Disney Co. began laying off workers in late March. 

Weekly jobless claims, a proxy for layoffs, have risen from historic lows and job openings have declined, in signs of easing demand for workers as the labor market gradually cools.

“The great labor market machine is finally slowing down some, but it’s still got a lot of strength left,” said

Robert Frick,

corporate economist at Navy Federal Credit Union.

Employers in leisure and hospitality are in hiring mode as they continue to recover from steep job losses early in the pandemic. Hospitals, nursing homes and daycare centers are also trying to add workers after many employees quit or retired.

More people have joined the labor market, making it easier for employers to find workers and taking some pressure off wage growth, a factor driving high inflation.

Economists surveyed by The Wall Street Journal estimated that employers added 238,000 jobs in March and that the unemployment rate held at 3.6%.

Any impact from the failure of Silicon Valley Bank and subsequent financial turmoil won’t likely show up in March’s jobs data, which reflects hiring trends earlier in the month. Still, the banking stresses could trigger a further cooling in the job market in future months. 

Small businesses and consumers might find it harder to get loans, which could ultimately result in layoffs. Workers, meanwhile, could be more hesitant to search for new jobs.

The Fed has been trying to slow investment, spending and hiring to combat inflation. The central bank raised interest rates by a quarter-percentage-point at its meeting last month, marking its ninth consecutive rate…