US hiring eases in March as economy shows signs of cooling

US job gains eased in March for a second straight month, government data showed Friday, adding to signs that the world's largest economy is cooling as policymakers push on in their fight against inflation.

The labor market data is closely watched for its potential impact on the Federal Reserve's policy decisions -- but analysts believe the latest figures will not be enough to prompt a pause in the central bank's interest rate hikes.

The report "shows that we continue to face economic challenges from a position of strength," said President Joe Biden in a statement, though he conceded that "there is more work to do."

The country added 236,000 jobs last month, slightly less than expected, while the unemployment rate inched down to 3.5 percent, the Labor Department said Friday.

These numbers came days after separate reports showed hiring by private US companies and services sector activity eased as well.

But wage growth was solid with average hourly earnings rising 0.3 percent to $33.18, according to the latest data.

Compared with a year ago, wages increased 4.2 percent.

"Employment continued to trend up in leisure and hospitality, government, professional and business services, and health care," said the Labor Department.

The report added that the labor force participation rate continued to move up last month as well.

The figures could bring some relief to policymakers who have been battling to rein in stubborn inflation.