There is more work to be done, but today’s employment report provides further evidence that the economy is continuing to recover from the worst economic downturn since the Great Depression. It is critical that we continue to make smart investments that strengthen our economy and lay a foundation for long-term middle class job growth so we can continue to dig our way out of the deep hole that was caused by the severe recession that began at the end of 2007.
Employer payrolls increased by 121,000 jobs in March, according to the Bureau of Labor Statistics’ establishment survey. The unemployment rate ticked down to 8.2% in March, according to the household survey. However, employment was virtually unchanged in the household survey.
Both surveys indicate the continuing challenges facing construction workers, as a result of the collapse in homebuilding following the bursting of the housing bubble. The unemployment rate for construction workers stands at 17.2%, more than double the national average. Because of weak private sector demand for construction investment and the nation’s continuing need for improved infrastructure, including maintenance of existing highways, bridges, and ports, the President’s Budget proposal to increase and modernize the nation’s infrastructure is well targeted to support the economy today and in the future.
Despite adverse shocks that have created headwinds for economic growth, including weak construction investment, the economy has added private sector jobs for 25 straight months, for a total of 4.1 million jobs over that period.
Manufacturing continues to be a bright spot and added 37,000 jobs in March. After losing millions of good manufacturing jobs in the years before and during the recession, the economy has added 466,000 manufacturing jobs in the past 25 months—the strongest growth for any 25 month period since September 1995. To continue the revival in manufacturing jobs and output, the President has proposed tax incentives for manufacturers, enhanced training for the workforce, and measures to create manufacturing hubs.
Other sectors with net job increases included leisure and hospitality (+39,000), professional and business services (+31,000), and financial activities (+15,000). Retail trade lost 33,800 jobs, construction lost 7,000 jobs, and government lost 1,000 jobs. State and local government job losses have moderated in recent months. Almost three-quarters of the slower job growth in March relative to February was due to slower growth in temporary help services and health care and day care services.
As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report, and it is helpful to consider each report in the context of other data that are becoming available.
Economy adds 120,000 jobs, unemployment dips
The unemployment dropped slightly to 8.2 percent today, as the economy added 120,000 jobs.
That jobs figure, though, fell short of the expectation of about 200,000 jobs.
NOTE: By the way, there will be no First Thoughts today. We're taking a small break on this Good Friday, but we will be updating the blog throughout the day as news warrants.
*** UPDATE ***
Mitt Romney responds to the jobs report, calling it "weak and very troubling."
“This is a weak and very troubling jobs report that shows the employment market remains stagnant," Romney said in a statement released by his campaign. "Millions of Americans are paying a high price for President Obama's economic policies, and more and more people are growing so discouraged that they are dropping out of the labor force altogether. It is increasingly clear the Obama economy is not working and that after three years in office the President's excuses have run out.”
*** UPDATE 2 ***
NBC's Frank Thorp reports House Speaker John Boehner pins slowed job creation on the president's policies.
"Today's report shows that families and small businesses are still struggling to get by because of President Obama's failed economic policies," Boehner said in a statement.
The
unemployment rate drops to 8.2 percent after the March unemployment
report showed US employers added 120,000 jobs for the month. A CNBC
panel discusses the data.
*** UPDATE 3 ***Majority Leader Eric Cantor, though, didn't name President Obama in his statement. Instead, he talks about the JOBS Act Cantor pushed and Obama signed.
"The monthly jobless numbers are just a quick snapshot of the economy, so while it is welcome news that around one hundred thousand jobs were created last month, there's more to the picture. The level of growth we are seeing isn't enough to make a difference for the millions of Americans still out of work or families facing high gas prices and the uncertainty of a lagging economy. Job growth happens when small businessmen and women in this country have the ability to take risks, invest capital and start hiring new workers. We want to make sure they have every opportunity to do so. The JOBS Act is now law because Republicans and Democrats put our differences aside and joined together to deliver results for job creators in this country. We can do more."
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