WASHINGTON — The U.S. March employment report is exceedingly weak, consistent with a recessionary trend, as payrolls fell another 80,000 and the civilian unemployment rate surged 0.3 points to 5.1%, its highest level since September 2005.
The jump in unemployment reflects a rebound in the labor force from a surprising February drop. Job losers were 54% of unemployed persons in March, according to the household questions.
January-February payrolls were revised to a 67,000 loss in total, another weak reading.
The March payroll composition included broad declines. Manufacturing was down 48,000 — autos fell 24,000, mainly reflecting the strike at a parts supplier, though the Bureau of Labor Statistics said the auto sector has been in decline for some time — construction lost 51,000, retail slid 12,400, transportation dropped 3,900, finance fell 5,000, information industries declined 6,000, and professional services lost 35,000, which includes a 41,800 decrease in employment services. Job gains were centered in government at plus-18,000, health care rose 22,800, and restaurants grew 23.400. The last is a surprise, given the broadly weaker economy.
Since January, the U.S. has lost 232,000 jobs. In the weak fourth quarter, job gains averaged 34,000 a month. The last time the U.S. had three months in a row of job losses was in 2003.
Unadjusted jobs were up 574,000, so the loss reflected seasonal adjustment.
Hours and earnings rose. Average hourly earnings posted a 0.3% rise for a 3.6% gain over the year, suggesting gains in production and income in upcoming monthly data. These could reflect greater use of existing workers as firings occur, but both should weaken ahead if the economy is in decline.
— Market News International
