US employers created 126,000 jobs in March, according to a report published by the Bureau of Labor Statistics. That was the smallest jobs gain since December 2013.
The unemployment rate, which is derived from a separate survey of American households, was unchanged at 5.5 per cent, the lowest level since May 2008.
A job growth report showed weaker jobs creation in the previous two months. January’s job gains were revised down from 239,000 to 201,000, while February’s payrolls rose by 264,000, down from an earlier estimate of 295,000. Employment growth has averaged 269,000 per month over the past 12 months.
The labour-force participation rate – the share of working-age Americans either working or looking for a job – decreased slightly, from 62.8 per cent in February to 62.7 per cent, matching the lowest level since 1978.
Jobs growth was mixed across sectors. Professional and business services added 40,000 jobs. Education and health services added 38,000 jobs. The retail sector created 26,000 positions. Job gain in the leisure and hospitality sector slowed to 13,000 from 70,000 in February. The mining and logging industry, which includes oil and gas extractions, lost 11,000 positions after a similar decline in February. Construction and manufacturing lost 1,000 jobs, each.
Average hourly earnings for all employees on private non-farm payrolls rose 0.3 per cent from the previous month to 24.86 dollars. Wages were up 2.1 per cent from a year earlier.
The average workweek for all employees on private non-farm payrolls fell by six minutes to 34.5 hours.
Last month, the US Federal Reserve paved the way for an interest-rates increase from near zero at its June 16-17 policy meeting. However, March’s weak hiring data may give Fed policymakers a reason to delay raising borrowing costs.
The yield on the benchmark 10-year Treasury note dropped 7 basis points to 1.84 per cent after a job growth report was announced. The dollar index, which measures the US currency against a basket of its major counterparts, was down 0.7 per cent to 96.7.
The US economy grew at a 2.2 per cent annualised pace in the final quarter of 2014, down from a 5 per cent pace in the three months to the end of September. Consumer spending rose 4.4 per cent, the quickest pace since 2006. Exports increased 4.5 per cent, while imports rose 10.4 per cent.
photo: Nazareth College / flickr.com / CC BY 2.0
