While the U.S. economy added 228,000 jobs in March 2025, the unemployment rate still continued to increase. Going into March, economists predicted that the job growth would decrease to 130,000 and unemployment would increase to 4.2%. As expected, the unemployment rate went from 4.1% in February to 4.2% in March, CNN reported.

Why did the U.S. economy see job growth in March?

According to CNN, the job growth that was seen in March shows how the economy is rebounding after wildfires and severe weather across the country affected employment in January and February. The U.S. is currently experiencing a historic streak after adding jobs for 51 straight months. Despite the streak, however, layoffs remain on the rise while Trump continues to push for new policies. The President’s push for more federal layoffs, mass deportations, funding cutbacks and ongoing tariffs are among the factors impacting the economy.

What are the experts predicting for the U.S. economy in the coming months?

Dana Peterson, chief economist at The Conference Board, told CNN that the latest data shows the “calm before the potential tariff-related storms.” Peterson said the tariffs will spark stagflation, meaning economic growth will stagnate while inflation and unemployment increase.

“Prices are rising faster than [people] want; growth is weak; and there will be some layoffs that will follow the demand destruction that could happen from tariffs being implemented,” Peterson told CNN. “We don’t anticipate a recession, but you could certainly see weaker growth, higher inflation and a hit — either major or minor — to the labor market if these tariffs and also retaliatory tariffs on the US go forward.”

How are Donald Trump’s tariffs affecting the economy?

While China retaliated against the U.S. on Friday after Donald Trump imposed tariffs on the country, the Dow Jones went down by 1,450 points. At the same time, the S&P 500 lowered by 4.1%. and Nasdaq stood at 4.1% lower.

“The March employment report indicates that the labor market was in good shape as of last month, but its old news considering the Trump administration’s tariff announcement and ensuing global market rout,” Kathy Bostjancic, Nationwide’s chief economist, told investors on Friday, per CNN.