The Department of Labor reports the March unemployment rate fell to a two-year low of 8.8% and that nonfarm employers added 216,000 jobs, the largest gain since May 2010.

Job gains occurred in several service-providing industries and in mining, and manufacturing employment continued to trend up. Since a recent low in February 2010, total payroll employment has grown by 1.5 million.

In March, employment in the service-providing sector continued to expand, led by a gain of 78,000 in professional and business services. Most of the gain occurred in temporary help services (+29,000) and in professional and technical services (+35,000).

Healthcare employment continued to increase in March (+37,000). Over the last 12 months, health care has added 283,000 jobs, or an average of 24,000 jobs per month.

Employment in leisure and hospitality rose by 37,000 over the month, with more than two-thirds of the increase in food services and drinking places (+27,000).

Manufacturing employment continued to trend up in March (+17,000). Job gains were concentrated in two durable goods industries–fabricated metal products (+8,000) and machinery (+5,000). Employment in durable goods manufacturing has risen by 243,000 since its most recent low in December 2009.

In March, employment in mining increased by 14,000, with much of the gain occurring in support activities for mining (+9,000).

Employment in local government continued to trend down over the month. Local government has lost 416,000 jobs since an employment peak in September 2008.

In March, average hourly earnings for all employees on private nonfarm payrolls were unchanged at $22.87. Over the past 12 months, average hourly earnings have increased by 1.7%. Average hourly earnings of private-sector production and nonsupervisory employees edged down by 2 cents over the month to $19.30.

The change in total nonfarm payroll employment for January was revised from +63,000 to +68,000, and the change for February was revised from +192,000 to +194,000.