U.S. employers created just 110,000 new jobs in March, the smallest gain since July, the U.S. Labor Department said today.

Last month’s job creation figure was much lower than the 220,000 jobs that analysts had been expecting.

While jobs were added in professional and business services, construction, education and health services, the economy lost factory and retail sector jobs.

The report showed the manufacturing industry cut 8,000 jobs in March, reversing half the previous month’s gain.

The Labour Department said the unemployment rate for March dipped to 5.2% from February’s 5.4%.

In February, the U.S. economy added 262,000 jobs.

“The headline U.S. payroll figure is a disappointment, but other aspects of the report suggest that the Fed will continue to tighten in measured fashion,” said BMO Nesbitt Burns chief economist Sherry Cooper.

Cooper said she antipates the Federal Reverse will boost U.S. interest rates by one-quarter of a percentage point on May 3 and again on June 30.

TD Bank economist Beata Caranci called the jobs report’s details “disappointing.”

“The dip in the unemployment rate is of little consequence in an otherwise weak jobs report,” Caranci wrote in a commentary.