WASHINGTON, April 7 (Xinhua) -- U.S. payroll gains slowed sharply in March, while the unemployment rate dropped to a near 10-year low, suggesting the labor market was still tightening.
The total nonfarm payroll employment increased by only 98,000 in March, far below the market expectation of 175,000 and the 219,000 in February, according to data released by the Labor Department on Friday.
The Labor Department revised down the payroll gains in January and February by 38,000. In the first three months of this year, job gains have averaged 178,000 per month.
The unemployment rate dropped to 4.5 percent in March, the lowest since 2007.
The labor force participation rate, which shows the share of working-age people in the labor force, was unchanged at 63 percent.
In March, the average hourly earnings rose 5 cents to 26.14 U.S. dollars, following a 6-cent increase in February. Over the year, average hourly earnings have risen by 2.7 percent, slightly lower than the 2.8 percent growth in the previous month.
Analysts attributed the slower job gains in March to weather-related factor, and pointed out that the low unemployment rate indicated that the labor market was still tightening.
The U.S. Federal Reserve in March raised interest rates for the second time in three months, shifting to a faster pace of rate hikes under the Trump administration as the job market is strengthening and inflation is rising toward its target of 2 percent.
According to the minutes of Fed's policy meeting in March, central bank officials would continue to raise interest rates this year and consider reduce its balance sheet later this year, on the expectation that the economy is improving as expected.
