Hiring Speeds Up - U.S. Economy Adds 196,000 Jobs in March
Hiring increased in most major segments of the economy, most notably health care and white-collar firms. The flush of new jobs kept the unemployment rate near a 50-year low of 3.8%, the Labor Department said.
The rebound in hiring might temper unease about the economy after a rocky start in 2019. Although a spate of large companies have announced layoffs recently, most firms are still looking to hire. One of their chronic complaints: A shortage of skilled labor.
The increase exceeded the 179,000 forecast of economists surveyed by MarketWatch.
Professional and technical firms hired 34,000 workers, restaurants increased staff by 27,000 and construction companies took on 16,000 new workers. A month earlier, builders cut employment by the most in a year and a half during a spell of severe cold and heavy snowfall.
Pockets of weakness were found in manufacturing and retail. Manufacturers trimmed 6,000 jobs after barely any gain in February. And retailers eliminated 12,000 jobs.
The amount of money the average worker earns rose 4 cents to $27.70 an hour last month.
The increase in pay in the past 12 months slowed to 3.2% from 3.4%. Still, wages are rising near the fastest pace in a decade. Most economists think yearly pay will soon move closer to the 4% mark, underscoring just how tight the labor market is.
The increase in jobs in February was revised up to 33,000 from 20,000. January job gains were little changed at 312,000.
The U.S. added an average of 180,000 jobs in the first three months of 2019 — a solid if somewhat slower pace compared to the tail end of last year.
Big picture: The boomerang in hiring in March should ease lingering worries about the economy after a sluggish start to the beginning of the year.
The U.S. is growing more slowly, it’s clear, and the companies aren’t hiring as rapidly. Yet wages are rising while layoffs and unemployment remain near the lowest levels in a half century.
The combination of stable growth and inflation is expected to keep the Federal Reserve from raising interest rates anytime soon.
What are they saying?: “Markets can breathe a sigh of relief as the employment data show that the economy continues to expand, reducing recession fears,” economists at Bank of America Merrill Lynch told clients.
“The labor market is certainly strong enough to keep the economy moving forward, but it isn’t generating the sort of inflationary pressure that would push the Fed off of its patient stance,” said senior economist Eric Winograd of the investment-research firm AllianceBernstein.
Big picture: The boomerang in hiring in March should ease lingering worries about the economy after a sluggish start to the beginning of the year.
The U.S. is growing more slowly, it’s clear, and the companies aren’t hiring as rapidly. Yet wages are rising while layoffs and unemployment remain near the lowest levels in a half century.
The combination of stable growth and inflation is expected to keep the Federal Reserve from raising interest rates anytime soon.
What are they saying?: “Markets can breathe a sigh of relief as the employment data show that the economy continues to expand, reducing recession fears,” economists at Bank of America Merrill Lynch told clients.
“The labor market is certainly strong enough to keep the economy moving forward, but it isn’t generating the sort of inflationary pressure that would push the Fed off of its patient stance,” said senior economist Eric Winograd of the investment-research firm AllianceBernstein.
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Jeffry Bartash (@jbartash) is a reporter for Market Watch
Tags: Jeffry Bartash, Market Watch, U.S. Economy, Adds 196,000 Jobs, March 2019 To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
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