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US Economy Job Growth Remains Slow and Steady

In the most recent jobs report, the US economy is said to have added 192,000 jobs in March. While, slightly below the expectation of 206,000 jobs, the report was slightly disappointing, with unemployment rates remaining stagnant at 6.7%.

However, the report shed a positive light on the US employment market by demonstrating the winter slowdown in job growth was likely due to bad weather. Furthermore, with revisions to previous reports adding 37,000 jobs to previous months, the overall message is that underlying growth is strong and the unemployment rate will continue to slowly, steadily decrease. In another positive sign for the labor market, there was an increase in labor force participation rates, which increased from 63 to 63.2 percent reaching the highest participation rates since last autumn. Most of this job growth came from the service and business service sector, the health and education sector, the leisure sector, and the construction sector.

Given that the job growth is in line with Fed forecast for economic growth, the Fed is likely to continue to slowly taper its expansive monetary polices over the next year, with interest rates expected to begin to rise sometime in 2015.