US Economy Adds 431K Jobs in March Amid Falling Unemployment Rate

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The U.S. economy picked up 431,000 new jobs in March as the unemployment rate dropped to a pandemic low of 3.6% from 3.8% last month, marking one of the fastest economic rebounds in decades, according to data released Friday (April 1) from the U.S. Bureau of Labor Statistics (BLS).

February payrolls were revised upward to 750,000 from 678,000. The jobless rate is tracking toward the 50-year low of 3.5% in February 2020, before the pandemic took hold in the U.S., the data show.

Economists surveyed by The Wall Street Journal (WSJ) forecasted 490,000 new jobs would be added while economists polled by Bloomberg estimated 440,000.

Read more: February Job Growth Beats Forecasts

Although the latest data missed economists’ expectations, the BLS report reflects 11 consecutive months of job gains topping 400,000, which is the longest run for growth since records started being kept in 1939, WSJ reported.

“All the constraints on the labor supply that were prevailing in 2021 have really eased,” Lydia Boussour, an economist at Oxford Economics, told WSJ. That is “a really important factor in driving that next leg of the recovery and getting employment back to where it was before the pandemic.”

It’s expected that as inflation continues taking a larger share of household budgets, coupled with diminishing savings, more people will make their way back to jobs in the months ahead, according to reports.

See also: US Jobless Claims Dip to Lowest Level in 53 Years

Inflation hit 40-year highs over the past few months, with escalating gasoline prices particularly affecting business and consumer confidence.

Employment growth continues in the leisure and hospitality sectors, with a March gain of 112,000 positions. Overall, however, leisure and hospitality employment is down by 1.5 million, or 8.7%, since February 2020. Professional and business services added 102,000 jobs in March, 723,000 higher than in February 2020.

Read also: Employers Add 467K Jobs Despite Omicron’s Shadow


Going High-Touch and High-Tech Helps Local Banks Win Over Small Business Customers

Across the financial services landscape, digital transformation has changed everything.

This fundamental and technological shift has led to an ongoing recalibration of the relationships small to medium-sized businesses (SMBs) have with financial institutions (FIs).

It’s a recalibration that could favor community banks and credit unions (CUs) over national banking giants.

“SMBs don’t just want a bank — they want a partner,” David Durovy, SVP of transformation at i2c, told PYMNTS. “And community banks and credit unions are uniquely positioned to be that partner.”

The shift toward community banks is driven by practical concerns. Despite the dominance of national banks, high fees and a lack of personalization remain major pain points — potential openings for local banks and credit unions. After all, many SMBs — especially those in rural areas or with lower revenues — struggle to find the level of support they need from national banks

According to Durovy, the appeal of local banks and credit unions is rooted in their ability to provide personalized service and local expertise, elements often lacking in the customer experience at national banks.

“It’s no surprise that if you’re banking with a national brand, you don’t feel that personal connection,” he said. “You don’t get the same banker every time, you don’t get someone who knows your market or your business on a first-name basis. But in a local banking or credit union environment, you can get that.”

Despite their strengths, community banks and CUs face challenges, particularly in digital services. Their digital platforms often lag behind those of national and regional banks. But by leveraging digital innovation without sacrificing the personal touch, community banks and credit unions can position themselves as the go-to financial partners for SMBs and reclaim their relevance.

Read more: Community Banks Appeal to Small Businesses, But …

Why SMBs Are Choosing Community Banks

According to research from PYMNTS Intelligence and i2c, SMBs want fewer fees and better service, and that’s where community banks can shine compared to larger, legacy FIs. Despite their appeal, community banks and CUs face a critical challenge: bridging the gap in digital service offerings between them and larger financial institutions.

“SMBs today are run by entrepreneurs who grew up digitally native. Some of them never used a drive-thru ATM teller. They never had a personal relationship with a banker until they started their business. Bridging that digital divide is crucial,” Durovy said.

Historically, smaller institutions lacked the scale to access cutting-edge technologies. But with modern banking-as-a-service (BaaS) providers and FinTech partnerships, even mid-sized and small banks can now deploy competitive digital services.

“By leveraging next-gen providers, community banks and credit unions can now access the same real-time payments, digital lending, and AI-driven customer support tools that were once reserved for big players,” Durovy said.

“The great thing is that today, digital tools and advanced servicing options aren’t just for national banks anymore,” he added. “Companies like i2c are bringing these capabilities to credit unions and community banks in ways that legacy players haven’t catered to before.”

At the same time, community banks have a unique advantage. Unlike national banks, which offer standardized solutions, local institutions can integrate digital tools with the high-touch service they are known for.

“We often think about our personal lives when it comes to digital banking, but many of those tools haven’t yet been fully exposed to SMBs,” Durovy said. “From on-demand working capital solutions to real-time liquidity management, SMBs need seamless access to financial services — whether they’re in the field, in front of a client, or purchasing supplies for their business.”

He added, “Marrying mobile and digital tools with the personal service provided in-branch is where community banks and credit unions can really differentiate themselves.”

Technology Gap Remains a Challenge and an Opportunity

While digital transformation is critical, reputation remains a defining factor in why SMBs choose financial partners. But what defines reputation in the financial services sector?

“Reputation ultimately boils down to trust,” Durovy said. “And trust is built through consistent service delivery — whether that’s transaction authorization rates, uptime, or simply meeting SMBs where they are in their business journey.”

National banks, by virtue of their scale, may struggle to offer the hands-on support that SMBs need. Meanwhile, community banks, with their focus on local engagement, can reinforce trust through consistent, reliable service.

“It’s not just about having that personal relationship — the handshake, the first-name basis — it’s about the systemic support that backs up those relationships,” Durovy said.

Even in urban centers, community banks maintain an edge when it comes to personalized service.

“There’s this perception that as long as you cater to the major metropolitan areas, you have the market covered. But when you add up all the small communities, it turns out they represent a significant portion of the national economy,” Durovy said. “That’s why local banking matters.”