US hiring SLOWS Again in March as Employers Add 236000 Workers
US hiring SLOWS Again in March as Employers Add 236000 Workers :The US labor market continued to show signs of weakness last month as job creation slowed down once more. This change may help to reduce inflation. In March, there were 236,000 more jobs added to the labor force, which was less than experts had anticipated and less than the strong 311,000 jobs added in February.
However, the Labor Department’s employment status report on Friday showed that the unemployment rate decreased slightly from 3.6 percent in February to 3.5 percent, which is close to six-decade lows. A crucial indicator of how many qualified workers are employed or looking for job, labor force participation rose to 62.6 percent, the highest level since the early stages of the pandemic in March 2020. Although markets were closed on Good Friday, the recent jobs report slightly increased Dow futures.
Both January and February saw very strong hiring, surprise experts who had anticipated a significant drop in 2023. The unemployment rate is still just slightly higher than its lowest point since the 1960s. The number of jobs added in March was slightly lower than the 240,000 analysts had predicted, but it was still a positive number.
According To An Economist :
According to Jesse Wheeler, an economist with the decision-intelligence firm Morning Consult, “the U.S. economy continued to add jobs at a quick rate in March, with a still-strong labor market showing some indications of softening in precisely the right spots.” Wheeler remarked, “March saw a rebound in labor force participation and pay growth that was encouraging for Federal Reserve policymakers.
After a year of swift rises to combat inflation, the Federal Reserve is keenly monitoring the job market as it decides whether to suspend its interest rate hike cycle.
In recent years, the scarcity of workers has contributed to unprecedented inflation as a result of corporations raising wages to recruit them. These expenses are ultimately passed on to consumers.
Hence, while a weaker employment market indicates that the economy is slowing down, it may also relieve inflationary pressure.
The weakest yearly gain since June 2021, average hourly earnings in March increased by 9 cents to $33.18, up 0.3 percent from February and 4.2 percent from a year earlier.
According to Dave Gilbertson, vice president of payroll management company UKG, “We’re still in a tight labor market, a market that benefits workers.”
Goldilocks Job Market :
But, the Goldilocks job market is at jeopardy as we turn to the future. We’re beginning to notice more and more indicators of a cool-off after two hot months.
In line with previous indications this week, the US labor market was beginning to cool off after heating up during the post-pandemic recovery. According to a study released on Tuesday by the Labor Department, the number of job opportunities at the end of February went below 10 million for the first time in almost two years, with particular declines in managerial and technical positions in the healthcare and professional services sectors.
Also, a survey released on Thursday by the outplacement company Challenger, Gray & Christmas revealed a significant increase in the first-quarter number of layoffs disclosed by American firms. Companies declared 270,416 job cutbacks between January and March, a 396 percent rise from the same time previous year. 38% of the jobs lost in the quarter were due to layoffs in the tech industry.
