After months of exceeding expectations, total nonfarm payroll employment cooled to 236,000 additions in March, with the unemployment rate dropping to 3.5%, the U.S. Bureau of Labor Statistics showed in the latest jobs report Friday.

Manufacturing was among the major categories that showed little change month over month. The 12,983,000 employed persons was a decline from 12,984,000 in February but up from 12,716,000 in March 2022, according to seasonally adjusted figures.

A mix of other recent data from the Institute for Supply Management’s Report on Business and the S&P Global US Manufacturing PMI had economists saying that a fifth month of contraction in manufacturing could be attributed to weak demand that spurred companies to cut costs, Manufacturing Dive recently reported.

The BLS subcategory of nondurable goods showed 4,888,000 employed persons, down from 4,890,000 in February and up from 4,814,000 in March 2022.

In paper manufacturing, the number of employed persons was up month over month but down year over year. There were 358,500 jobs in March, versus 356,800 in February and 361,500 the prior year. The plastics and rubber products manufacturing category showed 748,700 employed persons in March, down from 750,900 in February and also down from 749,300 last March.

Observers say the jobs report results suggest the Federal Reserve might hike interest rates again. BLS is slated to round out the March economic picture this week with the release of the consumer price index on Wednesday, producer price index on Thursday and import and export price indexes on Friday.

In addition to new facility expansions, packaging manufacturers made headlines with at least 1,800 U.S. layoffs reported in the first quarter. Packaging manufacturers’ earnings calls, which could shed further light on the labor situation in the most recent quarter, are largely slated to begin the last week of April.