BlogWood: MT Archives

Job Growth finally reaches 300,000

I’m sure the hype machine is already starting, but remember: W sold his last tax cut as a jobs plan, promising an average of over 306,000 jobs each month. This is the first time job growth has even approached that level, but this is just one month, so these numbers are not as great as you're gonna hear.
(corrected for egregious errors)

U.S. employment rose last month at the fastest pace in nearly four years, easily outstripping expectations, as workers returned after a grocery store strike and construction hiring bounced back on better weather, a government report on Friday showed.

The latest report from the Labor Department offered comfort to President Bush as the jobs market - a hot political issue in the U.S. presidential campaign -- finally made a decisive break to the upside.

Non-farm payrolls climbed 308,000 in March, the Labor Department said, the biggest gain since April 2000 and well above the 103,000 rise expected on Wall Street.

The unemployment rate ticked up to 5.7 percent from the two-year low of 5.6 percent seen in January and February.

Upward revisions to January and February payrolls helped contribute to the positive tone of the report, which could fuel expectations that the Federal Reserve may be closer to raising overnight interest rates from their current 1958 low of 1 percent than had been thought.

The March rise in payrolls reflected the resolution of a labor dispute at grocery stores in southern California that had idled 72,000 workers. The department said the return of those workers helped fuel a 47,000 increase in retail employment last month, but it did not quantify the impact.

Economists had said the return of those workers would boost payrolls, but that the impact was hard to gauge because it was unclear how many temporary replacement workers were being let go.

The report showed job gains were widespread across industries.

While a long-hoped for rise in manufacturing employment did not appear, the department said factory payrolls were unchanged in March, finally breaking a string of 43 consecutive monthly declines.