Economy Adds A Disappointing 126,000 Jobs In March

By Scott Neuman / NPR

Published April 3, 2015 at 3:09 AM PDT

This story was published more than 9 years ago.

Seattle Police Det. Kevin Nelson, left, talks with U.S. Army soldiers, in October, as they take part in a job fair that was part of a "transition summit" intended to provide employment and educational information to soldiers who may exit military service in the next year, at Joint Base Lewis-McChord, Wash.

Updated at 9:10 a.m. ET

The U.S. economy gained just 126,000 jobs in March, a figure well short of economists' expectations and the weakest growth since December 2013, the Labor Department reports. The unemployment rate held steady at 5.5 percent.

The consensus among economic forecasters had been for 245,000 new jobs, which would have continued a 200,000+ monthly streak that has been the longest such spurt of job growth since the early 1990s. Over the last year alone, the U.S. economy has added 3 million jobs.

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Robust jobs numbers from January and February were also revised downward by 69,000 total, according to the monthly Employment Situation Survey.

The labor participation rate remained nearly unchanged.

Despite the tepid news, average monthly salaries for nonfarm payrolls in March were up slightly, 7 cents to $24.86. The average hourly earnings of private-sector and nonsupervisory employees rose by 4 cents to $20.86.

The latest report bucks a trend that the BLS says say an average of 269,000 new jobs per month in the previous 12 months. However, with today's revisions factored in, the average for the last three months has been 197,000.

The Associated Press notes: "Economic growth has been hammered this year by winter weather, factory slowdowns and lackluster construction activity. The manufacturing, construction and government sectors each shed workers, while hiring at restaurants plunged from February."

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Wall Street will have a long weekend to ponder the meaning of the latest employment figures because markets are closed today for Good Friday. But, the apparent deceleration in hiring could cause the Federal Reserve to hold off on raising interest rates.

Economist John Canally of LPL Financial tells NPR's John Ydstie that "the Fed wants wants to see, or hopes to see, is that all this growth in the job market will eventually begin to push up wages. And then wages are a prerequisite to get any kind of inflation to stick. So until you get some wage inflation, you're not likely to get very much overall inflation in the economy."

Sectors that added jobs in March include professional and business services (40,000); retail trade (26,000) and health care (22,000).