6 April 2001, 16:59  The U.S. March employment report on balance was far weaker

WASHINGTON (MktNews) - The U.S. March employment reporton balance was far weaker than expected and calls into question anynascent recovery in the economy in 1Q. On average, privatepayrolls came in at +64,000 on average in 1Q, versus +70,000 in 4Q.The only anomaly is large upward revision to January payrolls (now +289,000), but that probably is too far in the past for policy-makers toworry. March payrolls came in at -86,000, versus +215,000 onaverage in January-February, signaling further slowing in the U.S.economy. Manufacturing jobs were off 81,000, retail off 46,000 onweakness in department stores and restaurants, government down4,000, and services up just 11,000, an unusually small gain reflecting a83,000 plunge in help supply services (mainly temporary workers).The unemployment rate rose 0.1 point to 4.3%, with the rate for adultmen up 0.2 point to 4.4%. The only glitch in the report was thatAverage Hourly Earnings were up 0.4%, higher than expected, for a4.3% rise YOY, on gains in mining and wholesale industries. Index ofaggregate hours was up 0.1%.

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