Payroll Growth Sluggish; Jobless Rate Dips

AP via Yahoo ^ | 4/1/05 | JEANNINE AVERSA

[philsfan24]

WASHINGTON - Payroll growth across the country was sluggish in March as employers added just 110,000 jobs, the smallest increase since July. Nevertheless, the labor market accommodated enough people to drop the unemployment rate to 5.2 percent.

The new figures, released by the Labor Department Friday, offered another mixed picture of America's hiring climate. The job market has been the sector of the economy that has been among the slowest to recover from the last recession.

Payroll growth, as measured by a survey of businesses, slowed in March. Job losses at factories and in the retail sector tempered gains in professional and business services, construction, education and health services and in other industries.

The 110,000 jobs added in March marked the smallest gain since last July, when payrolls grew by a tepid 83,000. March's payroll gain was half of the roughly 220,000 jobs that economists had forecast before the report was released. Job gains for February, meanwhile, were revised slightly downward to 243,000 from the initial 262,000 reported a month ago.

The civilian U.S. unemployment rate is calculated from a separate statistical survey than the payroll figures. The two statistical methods often can — and do — offer seemingly conflicting pictures of what is happening in the labor market.

The seasonally adjusted overall civilian unemployment rate dropped to 5.2 percent in March from 5.4 percent in February. The household survey showed that 357,000 people said they found employment last month, outpacing the number of people who couldn't find work. Thus, the fractional decrease in the overall jobless rate.

[philsfan24]

nothing to cheer over

[2banana]

On the other hand, our unemployment rate is still less than half of France and Germany...

[Ff--150]

it's almost like the "unenjoyment numbers" are treating the economists to an April's fool's joke

[ClearCase_guy]

Payroll growth across the country was sluggish in March as employers added just 110,000 jobs, the smallest increase since July. Nevertheless, the labor market accommodated enough people to drop the unemployment rate to 5.2 percent.

Ooooooooh, "sluggish" growth!
"just" 110,000 jobs
"smallest increase"
people were not exactly hired, they were merely "accommodated"

And, oh yeah, this was enough to lower the unemployment rate. So it's good news -- but we're hoping that you perceive it the other way.

[KevinDavis]

5.2 unemployment is not bad..

[JCRoberts]

"Just 110,000 Jobs"

Have we lost our perspective?

[rabidralph]

Not "us." The media who write this stuff. They still can't understand how they lost the election.

[elli1]

February jobs were revised downward...I have a feeling that the March figures will be revised upwards. Nuttin' scientific--just know that I got called back to work three weeks ago (to my diversionary job that keeps me from Freepin' too much).

[NeonKnight]

Most of this article reluctantly admits that our economy is humming along at a healthy pace. 4 percent growth in the first quarter is quite an impressive start. Most of the good news is towards the end of the article, as is SOP for the AP.

As far as unemployment goes, we are doing quite well, and any European country would salivate at such numbers.

[traderrob6]

These are all good numbers, never know it from the article more here

[ARCADIA]

our unemployment rate is still less than half of France and Germany...

The US measuring window is much smaller. They are not measured the same way so it is pointless to make a comparison.

France and the rest of the EU use the ILO's model to determine who is unemployed:

The unemployed comprise all persons above a specified age who during the reference period were

a. without work, i.e. were not in paid employment or self-employment,

b. Currently available for work, i.e. were available for employment or self-employment during the reference period; and

c. seeking work, i.e. had taken specific steps in a specified time period to seek paid employment or self-employment. The specific steps may include registration at a public or private employment exchange: application to employers; checking at worksites, farms, factory gates, market or other assembly places; placing or answering newspaper advertisements; seeking assistance of friends or relatives; looking for land, building, machinery or equipment to establish own enterprise; arranging for financial resources; applying for permits and licences, etc.

The US rate only looks at a 12 month window. Anyone who has been out of the workforce for more then 12 months is not counted (anywhere)

When the IPO calculation was applied in GB the nominal unemployment rate changed from 3.5% to around 5.4%. So it is important to look at not only the nominal rate, but also how that rate is determined.

[KC_Conspirator]

This is great news, spun as negative numbers for Bush. An unemployment rate of only 5.2%? Why during zee Klinton years that number would have lead every news broadcast.

[jbloedow]

OK, reality check here. I'm from Canada. If Canada, or any W. European, or for that matter almost any comparative country got to 5.2% unemployment, the president/prime minister would have a job for life. The people would let him suspend elections indefinitely. And the country would be renamed after him.

[BJClinton]

And the country would be renamed after him

Martinistan?

[GianniV]

If Kerry were elected, the economy would be "booming" per this article.