So What Does the March Jobs Report Really Mean?
The March jobs report was released this past Friday and it was reported that the U.S. economy added 196,000 jobs in March. This is a huge increase from the shockingly low gain of 22,000 (which was revised to 33,000 in the March report), in February. The unemployment rate remained at a historic 3.8% percent (5% employment is considered full employment). This is great news, especially after the low numbers that came in February. But, if you’re like me, aside from these two numbers, the report can just seem like a jumble of different random numbers and statistics. So we’re here to take a step back and break down what this report really means for you, and the health of America’s economy.
Here’s the main ideas to take away from the report:
1. Job Growth Bounced Back
February’s report brought fears of a sharp economic growth slowdown, and thoughts that the decade long economic expansion might be nearing to an end. But March’s strong employment numbers greatly restored confidence and gave Federal Reserve officials reassurance that the labor market is still strong.
2. Wages Continue to Grow
Average wages have been steadily increasing for several months now, and March is no exception. With the unemployment rate remaining at a steady 3.8%, competition among employers for available skilled workers has increased, and this has pushed up the average wage. Hourly earnings rose by 4 cents, to $27.70, following a 10 cent increase in February.
3. Most Industries Saw Job Growth
Hiring in multiple major industries was down in February, but in March most industries have returned to growth. “Health care led with 49,000 new workers, professional and technical services added 34,000 and food and drinking establishments contributed 27,000. Construction rose by 16,000.”
So overall, economic conditions are looking more favorable and much less shaky than it did in the beginning of the year, especially this past month. Based on the data given by the Bureau of Labor Statistics, the U.S. Economy is in the midst of one of the longest-lasting job and growth expansions on record. So set those fears from last month aside, and celebrate the fact that the US economy is currently roaringly successful.