NEW YORK: US economy has seen its lowest job growth since December 2013. In the march the economy created 126,000 jobs in March which is half of the number in February’s hiring number 264,000 and this will delay the interest rate hike which was later in the year.
Slowdown in manufacturing impacted by the strong dollar, fewer houses being built and cheaper gas and harsh weather may be some of the reason behind the slower growth in hiring but the unemployment rate remained the same at 5.5 percent.
Millan Mulraine, deputy chief economist at TD Securities in New York said, “The report confirms the emerging narrative of slowing growth momentum seen in the other economic indicators. It will weaken the argument for a mid-year (rate) hike.”
Since last June dollar has gained 13 percent against the currencies of the main US trading partners.
The drop in the oil prices has curtailed the U.S. drilling activity. The mining sector payrolls declined 11,000 as there is no activity in oil and gas extraction and construction employment fell by 1,000 in the last month.
Since October energy producers have shutdown most of its rigs.
The unsettled labor dispute at the West Coast ports, harsh winter and global demand falling down has also put its effect on the hiring.
Average hourly earnings increase by 0.3 percent some good news.
The announcements of pay hikes by companies like Wal-Mart and McDonalds could gain traction in the coming months. TJX Cos Inc and health insurer Aenta are other companies which also announce pay hikes.
Working age employed Americans or looking for job or labor force participation rate has slipped to 62.7 percent by one-tenth of a percent. There are other measures in the report which improved.
