US March Jobs Grew by 98,000
Though the economy added March jobs, it did so at half the expected rate of 180,000
The Index
The Bureau of Labor Statistics (BLS) reports on job growth monthly. It’s a widely watched statistic, as it is considered to predict broader economic growth and gauge the health of the American labor force. Given that most jobs are in the private sector- and the private sector is more sensitive to shorter term business cycles- private sector jobs is more widely scrutinized by many on Wall St. March jobs reports were highly anticipated, as the US economy moves into the new era of Donald Trump’s presidential administration.
Along with the gross number of jobs added or subtracted from the labor force in a given month, the BLS reports on unemployment in this series of reports. For obvious reasons, unemployment is considered important to our understanding of the current economy. Unemployment is currently less popular than it was in years past. The Federal Reserve Open Market Committee recently moved away from using unemployment heavily, creating a new Labor Market Conditions Index (LMCI) in 2014.1
By the Numbers
March jobs grew by 98,000. Unemployment fell to 4.5% from 4.7% in February. That said, 98,000 jobs is short of the 180,000 jobs that had been hoped for by Wall St.
Additionally, March’s 98,000 jobs is the lowest monthly jobs number since May of 2016. This slowing jobs growth seems at odds with the fall in unemployment. We here at Investment Annuity do not necessarily put much weight in raw unemployment numbers- even before the Federal Reserve moved away from it towards its LMCI in 2014, we held that opinion.
Of particular interest to us is the jobs added by industry, as we are long-term investment focused. Top-line numbers drive the trades of the day, but jobs by sector drives our long term decisions of what sectors to weigh in to or back out of. Professional, Business Services, ex. Temp Help, had the largest growth. This is encouraging to us in many ways, as some job reports in recent years have been carried by the service industry.
Wholesale Trade, Information, and Retail Trade sectors all lost jobs in March. Retail Trade lost the most jobs by far, losing 29,700 jobs. All other sectors grew in March.
March Jobs By Sector
March Jobs by Sector
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All data collected from the Bureau of Labor Statistic March Jobs report.
Meet the Author & Portfolio Manager
Victor Schramm is a Certified Fund Specialist (CFS®), with expertise in Mutual Funds & Variable Annuity Separate Accounts. He focuses on long term investing geared toward our annuity clients as a Fee Only Investment Advisor. He lives in Portland, OR.
Victor Schramm, CFS®Analyst & Portfolio Manager
Disclaimer
This information is solely a representation of publicly available facts intended for educational use only. This is not a solicitation to buy or sell any public or private Security, in any city named in the article or elsewhere. BLS jobs data is not to be used as a market timing tool for buying or selling securities.