U.S. unemployment rate near 10-year low, but job creation falters
- Author: Zachary Reyes Apr 09, 2017,
Apr 09, 2017, 8:00
560 jobs were added in March.
"Hiring in March was expected to drop after the monthly gains of more than 200,000 in the two previous months, but this marks the weakest showing for the economy in almost a year", writes Nelson D. Schwartz at The New York Times.
In March, temperatures dropped and a storm lashed the Northeast and Midwest.
As a result, economists had expected a falloff in hiring in March.
The number of jobs created in February was revised down from 235,000 to 219,000, while the figure for January was revised down from 238,000 to 216,000.
"A report touting more jobs with higher wages will likely keep the Fed on track for two more rate hikes this year and also addressing their sizable balance sheet", said Beth Ann Bovino, U.S. chief economist for S&P Global Ratings in NY. In addition, the Labor Department revised numbers for February and January, reflecting 38,000 fewer jobs than originally reported.
Economists had forecast payrolls increasing 180,000 last month and the unemployment rate unchanged at 4.7 percent. North Korea, and U.S. Stocks on Wall Street rose. The last three months have added an average of 178,000 jobs per month.
The solid employment gains suggest that an apparent slowdown in gross domestic product growth to around a 1.0 percent annualized pace in the first quarter is probably temporary. The sharp 2 tenths declined in unemployed raised the issue of wage inflation which, has yet to materialize. But for men, the unemployment rate stayed steady at 4.3 percent. 1, the Labor Department said on Thursday.
"Companies that are growing want to hire really good people, and when you have an unemployment rate under five percent, there's a shortage of them", said Tom Gimbel, chief executive officer of recruiting firm LaSalle Network. The jobs report looked strong even beyond the headline, with gains largely in full-time work and both manufacturing and construction adding employment.
The unemployment rate for all Americans declined from 4.7 percent in February to 4.5 percent in March.
During the Labour government unemployment remained at around 5% for most of the 13-year period - in the ballpark of full employment, in practice.
Hospitals added just about 9,000 jobs, while ambulatory centers, which includes doctors offices, outpatient centers and diagnostic laboratories, added just shy of 6,000 jobs.
On the goods-producing side, mining added 11,000 jobs, up from February's tally of 8,000 jobs added.
Employment at clothing retailers decreased by 5,800 jobs last month and general merchandise stores shed 34,700 positions.