Hiring rebounds as US employers add a solid 196,000 jobs
WASHINGTON (AP) — Hiring in the United States rebounded in March as U.S. employers added a solid 196,000 jobs, up sharply from February's scant gain and evidence that many businesses still want to hire despite signs that the economy is slowing.
The unemployment rate remained at 3.8%, near the lowest level in almost 50 years, the Labor Department reported Friday. Wage growth slowed a bit in March, with average hourly pay increasing 3.2% from a year earlier. That was down from February's year-over-year gain of 3.4%, which was the best in a decade.
The employment figures reported Friday by the government suggest that February's anemic job growth — revised to 33,000, from an initial 20,000 — was merely a temporary blip and that businesses are confident the economy remains on a firm footing. Even with the current expansion nearly 10 years old, the U.S. economy is demonstrating its resilience.
At the same time, the economy is facing several challenges, from cautious consumers to slower growth in business investment to a U.S.-China trade war that is contributing to a weakening global economy.
Stock futures rallied after Friday's jobs data was released at 8:30 a.m., and bond prices rose as well, with yields slipping.
So far this year, U.S. job gains have averaged 180,000 a month, easily enough to lower the unemployment rate over time, though down from a 223,000 monthly average last year.
Last month, job growth was strongest in the service sector. Health care added 47,000 jobs, restaurants and bars 27,000 and professional and business services, which includes such high-paying fields as engineering and accounting, 37,000.
Manufacturers cut 6,000 jobs, marking their first decline in a year and a half. The weakness stemmed from a sharp drop in employment at automakers, likely reflecting layoffs by General Motors. Construction firms added 16,000.
The overall economy is sending mixed signals. Most indicators suggest slower growth this year compared with 2018. That would mean hiring might also weaken from last year's strong pace.
Consumers have shown caution so far this year. Retail sales fell in February, and a broader measure of consumer spending slipped in January, potentially reflecting a waning effect of the Trump administration's tax cuts. Businesses have also reined in their spending on industrial machinery and other equipment and on factories and other buildings.
And in Europe and Asia, weaker economies have reduced demand for U.S. exports. Europe is on the brink of recession, with its factories shrinking in March at the fastest pace in six years, according to a private survey.
The U.S. trade war with China has weighed on the Chinese economy, which has hurt Southeast Asian nations that ship electronic components and other goods that are assembled into consumer products in China's factories.
Economists now forecast that the U.S. economy will expand roughly 2% to 2.5% this year, down from 2.9% last year.
Some positive signs for the economy have emerged in recent weeks: Sales of both new and existing homes rose in February after declining last year. More Americans are applying for mortgages now that rates have fallen.
And some of the weakness in spending earlier this year likely reflected delays in issuing tax refunds because of the government shutdown. Refunds largely caught up with their pace in previous years in March, economists at Bank of America Merrill Lynch said, suggesting that spending may as well.