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By Kristin Myers, Editor-in-Chief

What's Happening Today

Happy Friday! It's Kristin with your daily morning digest.

The Bureau of Labor Statistics revealed this morning that U.S. employers added 431,000 jobs in March, as the labor market continues to strengthen. And while that figure is significantly lower than February's upwardly revised gain of 750,000, the number of people who said they weren't able to work due to pandemic-related closures or lost business fell about 40%, to 2.5 million in March from 4.2 million in February in sign of progress. The unemployment rate declined slightly to 3.6% last month from 3.8% in February and is quickly approaching the February 2020 pre-pandemic level of 3.5%. Today's jobs report is an important one because the labor market is one of the areas the Federal Reserve has been watching closely as it decides how aggressively to hike interest rates.

The stronger the labor market, the stronger the argument that the U.S. economy is ready to raise interest rates at a more aggressive pace. Raising rates is one of the Fed's important tools for fighting high inflation, but it makes borrowing money (like for a mortgage or car loan) more expensive for consumers. A strong labor market could also help soothe fears of an economic slowdown, or even recession, as indicated earlier this week by the inverted yield curve, widely considered a recession warning sign.

Even as the unemployment rate drops, job openings still remain close to their record highs. Employees were looking to fill 11.3 million jobs in February as 4.4 million people quit their jobs.

Stocks are rising on the heels of the latest jobs numbers. In a "good news is bad news" twist, investors don't always love a strong jobs report because it makes rate hikes more likely. Traders are already betting more strongly on a hike of 50 basis points at the Fed's May meeting. While raising rates help fight inflation, higher rates can take a bite out of corporate profits which can end up stinging investment portfolios.

- Kristin

Editors' Picks

US Maintains Momentum, Adding 431,000 Jobs in March (The Balance)

Almost Half of US Small Firms Are Raising Compensation (Bloomberg)

Could Oil Release Make a Real Dent in Gas Prices? (The Balance)

Most US Adults Don't Support Student Loan Cancellation (The Balance)

Restaurants Are Getting Creative With Menus To Counter Soaring Food Costs (CNBC)

The Real Reason the IRS Is Behind in Processing Tax Returns (The Washington Post)

Best Mutual Funds for a Roth IRA in 2022 (The Balance)

Where To Buy Gap Insurance for Your Car (The Balance)

Off the Charts

Today's release of jobs data from the Bureau of Labor Statistics shows most of the 22 million jobs lost in the pandemic have now been recovered, and that workers generally have their pick of positions.

Number of the Day

6% - That's how much disposable income households have saved recently—about half (or less) what we saved during most of the pandemic—as rising inflation raises costs.

April is Financial Literacy Month, and The Balance is going on IG live in a series dedicated to your personal finance journey. Join The Balance Editor-in-Chief Kristin Myers with special guests throughout the month of April. Our first IG live event is on April 5 at 3 p.m. EST with Berna Anat, producer, speaker and fin-fluencer. Follow us on Instagram to get updates on The Balance's live events this month!

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