Friday, April 5, 2013

March Jobs Report: 88,000 new jobs, unemployment trickles down

The Bureau of Labor Statistics has released its March jobs report and the reaction has been mixed once again

Good news is 88,000 jobs were added during the month and the unemployment rate trickled down 1/10 of a percentage point to 7.6 percent. Keep in mind this is a short-term result, although any positive change is good news. The professional, business and health care sectors were behind the job growth.

Bad news is, 88,000 jobs relative to the previous year's monthly results is disappointing. Why the unemployment rate decreased is due to other labor factors, but the last time we had jobs added to this level was in June of 2012.

A scroll down my twitter feed and a sneak peak at some headlines revealed diverse reactions. There was the usual criticism, faulting stubborn politicians and the budget deadlock and all. Then there was the Economist's Free Exchange who was optimist because, as was pointed out, there were still jobs added even after our stubborn politicians allowed the sequestration to take place.

Much of the negative feedback stems from reports that most of the jobs that have been added come from low-paying jobs. Those jobs apparently pay less than the national average. Middle class jobs are being wiped out as more employers turn to cost saving strategies to earn a decent profit. That amounts to hiring those willing to accept lower paying positions to put food on their table and pay their bills. But these positions are failing to meet those simple obligations.

Time will tell where this will all go.

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