The U.S. economy added 236,000 jobs in March and the unemployment rate declined to 3.5 percent, as labor markets stayed tight despite interest rate hikes by the Federal Reserve.

Analysts were expecting the economy to add 238,000 jobs and for the unemployment rate to hold steady at 3.6 percent.

The U.S. labor market has remained strong in the face of nine consecutive rate hikes by the Fed but the central bank is still projecting the unemployment rate to hit 4.5 percent this year, according to its latest summary of economic projections.

Developing.