March Jobs Report: Unemployment Rate Falls but Hiring Slows
It was an off month for the labor market as struggling retailers employ fewer workers.
Employment growth unexpectedly slowed in March, hurt in part by job losses in the retail industry. But even as the number of new jobs created came in well short of what economists were looking for, the unemployment rate beat expectations to hit levels not seen in 10 years.
The March jobs report from the Labor Department revealed that the economy created just 98,000 jobs in March. Economists, on average, were expecting jobs growth of 175,000, according to a survey by Econoday.
The unemployment rate, which is derived from a separate survey, dropped to 4.5% against expectations for 4.7%. The number of long-term unemployed folks was unchanged at 1.7 million, and the number of those working part-time who wanted to work full-time barely budged at 5.6 million.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Employment increased in professional and business services and in mining, but that couldn't offset shrinking employment in the retail sector. Several prominent national chains have been closing stores this year.
Wage gains for nonsupervisory workers rose 4 cents to $21.90 in March. Nonsupervisory workers comprise four-fifths of the workforce, and their wage gains are more likely to be reflected in prices and consumer spending. Adding in supervisors and executives, hourly earnings added 5 cents to $26.14.
Kiplinger's economic outlook expects the job market to continue to tighten this year as demand for skilled workers exceeds availability. Employment growth in 2017 should slow to an average of 180,000 jobs per month, from 187,000 per month in 2016, but the unemployment rate will be around 4.5%. The four-week average of initial unemployment claims is still near its lowest level since 1973, limiting the additions from this source to the ranks of the unemployed.
Furthermore, the number of first-time filers for unemployment benefits continues to trend lower. For the week ended April 1, the number of newly unemployed workers fell to 234,000, a decrease of 25,000 from the previous week's revised level of 259,000. The four-week moving average was 250,000, a decrease of 4,500 from the previous week's revised average. Weekly initial jobless claims are tracking at levels last seen in 1973, according to the Federal Reserve.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.
A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
The Robots Are Coming... But Not For a While
The Kiplinger Letter There’s excitement in the tech sector over the potential of humanoid robots, but widespread adoption is likely to be years away.
By John Miley Published
-
Farmers Face Another Tough Year As Costs Continue to Climb: The Kiplinger Letter
The Kiplinger Letter Farm income is expected to decline for a second year, while costs continue to up-end farm profitability.
By Matthew Housiaux Published
-
H-1B Work Visa Rules Get a Revamp
The Kiplinger Letter H-1B visas allow employers to hire high-skilled foreign workers. Regulators have finalized new rules for this visa program following last fall's proposal.
By Matthew Housiaux Published
-
When's the Best Time to Buy a Domestic Flight? The Kiplinger Letter
The Kiplinger Letter A new study by CheapAir.com has crunched the numbers.
By Sean Lengell Published
-
Woes Continue for Banking Sector: The Kiplinger Letter
The Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
By Rodrigo Sermeño Published
-
Are College Athletes Employees of Their Schools?: The Kiplinger Letter
The Kiplinger Letter A recent ruling has ramifications for labor relations and the unionization of student athletes.
By Sean Lengell Published
-
Salton Sea Clean Energy and Lithium Project Gets Approval: The Kiplinger Letter
The Kiplinger Letter California's Salton Sea is due to see the construction of a new lithium extraction and geothermal clean energy power plant.
By Matthew Housiaux Published
-
More Woes for Anheuser-Busch as a Strike Looms: The Kiplinger Letter
The Kiplinger Letter Drinkers of Anheuser-Busch beers may want to stock up soon. A looming strike threatens to shutter its U.S. breweries later this month.
By Sean Lengell Published