Even though the US job growth slowed in March despite many continued layoffs in the embattled retail sector, a drop in the unemployment rate to a near 4.5 percent, indicated that the labor market strength remained intact.
According to the Labor Department, the nonfarm payrolls increased by almost 98,000 jobs only last month, the fewest number since last May.
Job gains were exceeded to 200,000 in January and February. They were also held back by a slowdown in the hiring sector at construction sites, leisure, factories, and hospitality businesses.
During March, the temperatures were dropped and a storm hit the Northeast and Midwest areas. According to economists, these bad weather conditions accounted for the stepdown in hiring. The unemployment rate dropped from 4.7 percent in February, the lowest level since May 2007.
According to Scott Anderson, chief economist at Bank of the West in San Francisco, this disappointing gain in nonfarm payrolls in March is a bit of a head fake that doesn’t reflect the real underlying strength and momentum in the labor market.
According to economists, the US economy now needs to create at least 80,000 new jobs per month in order to keep up with growth in the working-age population. Economists forecasted payrolls to increase 180,000 last month and the unemployment rate unchanged at 4.7 percent.
Build your new life in the U.S.