U.S. created only 98,000 jobs in March but unemployment rate dropped to 4.5%
The economy added only 98,000 jobs in March, well below expectations, though the unemployment rate dropped to its lowest rate since May 2007, before the recession started.
The jobless rate last month fell from 4.7 percent to 4.5 percent because 472,000 more Americans found jobs last month, the Labor Department said Friday.
The year’s jobs growth had started strong — bolstered by warmer-than-normal weather — and an unexpectedly chilly March likely weighed on construction, which added only 6,000 jobs after growing by 59,000 in February.
“Job growth this year is running close to last year’s pace and is running well ahead of what is needed to keep up with labor force growth,” said Gus Faucher, chief economist at PNC Financial Services.
Jobs were revised down by 38,000 for January and February based on what was previously reported, but each month remained above 200,000.
But the last three months have averaged a solid 178,000 jobs each.
Economists had predicted that March jobs might slip after January and February posted robust gains.
Justin Wolfers, an economics professor at the University of Michigan, said: “You can stare at the labor market data all day, and you won’t be able to see an election effect. The economy is continuing, as before.”
Notably, the unemployment rate declined among less educated workers.
The unemployment rate for those with less than a high school diploma fell to 6.8 percent from 7.9. And the jobless rate for teenagers fell to 13.7 percent from 15 percent.
House Ways and Means Committee Chairman Kevin Brady (R-Texas) said that a key to strengthening the economy is tax reform, a forthcoming GOP legislative priority.“It’s clear there is a lot of work to do to strengthen our economy, and it starts with overhauling our uncompetitive tax code,” Brady said.
Manufacturing added 11,000 jobs in March, continuing a four-month stretch of gains, though lower than the 26,000 from the previous month.
National Association of Manufacturers (NAM) President and CEO Jay Timmons said President Trump’s plan to slash regulations is bolstering confidence of the sector.
