Disappointing U.S. jobs report: only 126,000 new jobs in March
Potential slowdown in job growth, coupled with more discouraged workers returning to the labor force, may moderate the drop in the unemployment rate in the coming year
NEW YORK, April 3, 2015 — The economy gained only 126,000 new jobs in March, much lower than the average monthly change in recent months. The slew of disappointing news about consumption and investment in recent months might be catching up with employment. It is too early to conclude that job growth is slowing down, but it is a possibility. However, at least some of the weakness in the past month may have to do with the long duration of the winter this year. Also, the effects of lower oil prices are also clearly visible in the mining sector.
The trend in the unemployment rate is clearly downward, but the potential slowdown in job growth, coupled with more discouraged workers returning to the labor force down the road, may moderate the drop in the unemployment rate in the coming year. Wage growth has begun to moderately accelerate in recent months, and as the labor market continues to tighten, we expect to see further acceleration in the coming year.
Source: The Conference Board