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Employers may soon have difficulty finding skilled talent to fill open roles.

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In today’s edition:

🫣 Trouble ahead

Tapped out

World of HR

—Paige McGlauflin, Courtney Vinopal, Kristen Parisi

RECRUITMENT & RETENTION

Graphic of a surprise jobs report

Francis Scialabba

We are so back? After a dour jobs report in February, March delivered surprisingly strong gains for the US labor market, according to the Bureau of Labor Statistics’ latest employment situation report. In fact, March’s job growth marked the highest monthly gains so far for President Trump’s second administration.

However, looking beyond top-line payroll gains, something concerning is brewing within the economy, as people out of work gradually exit the labor market. That could be worrying for employers down the line, should job gains persist, one expert said.

Employers added 178,000 jobs in March, beating economists’ expectations of 60,000. Healthcare, recovering from strikes earlier this winter, led in job growth by industry, adding 76,000 jobs. That was followed by construction, which added 26,00 jobs, and transportation and warehousing, which added 21,000.

Additionally, the topline unemployment rate fell slightly from 4.4% to 4.3% in March. Looking at the topline job gains and unemployment may suggest “a really good report,” Nicole Bachaud, a labor economist at ZipRecruiter, told HR Brew. Looking under the hood, however, shows a different picture. “When you look underneath at some of the underlying foundational numbers, it tells a quite different story.”

For more on what HR needs to know about the latest jobs report, keep reading here.—PM

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TOTAL REWARDS

President Trump

Getty Images

As the US continues to fund a war in Iran, President Donald Trump said childcare funding from the federal government is off the table.

During an Easter reception at the White House on Apr. 1, the president said he’d directed Office of Management and Budget Director Russell Vought not to “send any money for daycare because the United States can’t take care of daycare.” He went on to say that state governments should fund childcare by raising taxes instead.

“We’re fighting wars. We can’t take care of daycare,” Trump said. He similarly said the federal government couldn’t fund Medicare or Medicaid because it’s prioritizing “military protection.”

Though Trump didn’t specifically point to the private sector as being on the hook for funding childcare, the comments suggest employers will likely continue to shoulder the burden to the extent they’re able to.

For more on Trump’s comments about childcare, keep reading here.—CV

HR STRATEGY

a globe with symbols of office life floating above

Morning Brew

The US-Israeli war against Iran has affected seemingly every part of the global economy. Governments and employers from Europe to Australia have taken steps in the past week to limit their and their workers’ energy consumption.

The Australian government halved its oil tax for three months in an effort to reduce the burden on residents, the Australian Broadcasting Corporation reported, while some employers have provided additional relief. Wesfarmers, which runs Kmart, Target, and Priceline in the country, has suspended nonessential business travel, and elder-care service Prestige InHome Care increased travel rebates for its caregivers.

On Mar. 31, Dan Jørgensen, energy commissioner of the European Union, encouraged residents to “work from home where possible,” according to Newsweek. However, Simon Harris, finance minister of Ireland, told reporters in Tipperary, Ireland the country does not currently plan on recommending remote work or travel adjustments, despite the International Energy Agency’s contrary suggestion, the Journal reported.

For more on how employers around the world are responding to the oil crisis, keep reading here.—KP

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WORK PERKS

A desktop computer plugged into a green couch.

Francis Scialabba

Today’s top HR reads.

Stat: Job cuts in the tech industry increased by 24% YoY in March. (Bloomberg)

Quote: “There’s enough conversation around this that we certainly should, as a country, be talking about what sorts of policies make sense in a world where the way employment and careers work now changes a lot in the next two to five years.”—Robert Seamans, an economist at New York University, on the growing threat of AI in the job market (the New York Times)

Read: Starbucks is increasing rewards for stores that hit sales goals and expanding tipping for baristas. (the Wall Street Journal)

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