April 1, 2022: U.S. job growth continued at a brisk clip in March, with the unemployment rate falling to a new two-year low of 3.6% and wages re-accelerating, positioning the Federal Reserve to raise interest rates by a hefty 50 basis points in May. This report was produced by Chris Dignam.
STORY: The U.S. economy added 431,000 jobs in March, continuing a strong run of hiring, and the unemployment rate fell to 3.6%, the lowest since February of 2020 – the month before the country was thrust into a global health crisis.
While the jobs number fell short of economists’ 490,000 estimates, President Joe Biden said Friday’s employment report underscored strong momentum in the economy, as it faces soaring inflation as well as Russia’s war against Ukraine, which is further straining global supply chains.
“And more and more Americans get jobs, as they do, it’s going to help ease the supply pressures we’ve seen. And that’s good news for fighting inflation. It’s good news for the economy and it means that our economy has gone from being on the mend to be on the move.”
The Labor Department’s closely watched report also showed employment in professional and business services, financial activities and retail sectors were now above levels from before the global health crisis.
The broad increase in payrolls was led by the leisure and hospitality industry, which added 112,000 jobs.
And the jobs number for February was revised higher to 750,000 instead of the previously reported 678,000.
The employment report further dispelled financial market fears of a recession following slight inversions of the widely tracked U.S. two-year/10-year Treasury yield curve this week.
That closely watched yield curve reinverted Friday after the jobs data supported the view that the Federal Reserve will need to hike rates more aggressively to stem inflation.
Posted on: 2022-04-01T23:57:18+05:00