Posted on 04/04/2003 9:18:50 AM PST by P.O.E.
WASHINGTON (CBS.MW) -- The U.S. labor market continued to convulse in March, as 108,000 jobs were destroyed following a loss of 357,000 in February, the Labor Department said Friday.
The nation's unemployment rate remained at 5.8 percent, with 8.45 million Americans officially looking for work.
"Labor market conditions remained sluggish in March," said Kathleen Utgoff, commissioner of the Bureau of Labor Statistics.
Combined with the downward revision to February's payrolls, the job losses over the past two months were about 145,000 worse than expected by Wall Street economists.
A survey of economists estimated, on average, a loss of 17,000 jobs in March. They also expected the jobless rate to rise to 6 percent.
Financial markets largely ignored the jobs report. Stocks opened marginally higher, pressuring bonds. See Market Snapshot and Bond Report.
"No one seems to care much about the lousy U.S. jobs report right now," analysts at Briefing.com said. "We think that could prove to be a costly mistake."
Investors remain focused on the cause of the recent weakening in the economy -- chiefly the war and high energy costs, said Tony Crescenzi, chief market strategist at Miller Tabak. "Developments on these fronts have clearly been very positive of late -- oil is down sharply again today, for example."
The jobs report continues a string of worse-than-expected economic reports in the past week that is trying the patience of the Federal Reserve.
On Tuesday, the Institute for Supply Management said its manufacturing index fell to 46.2 percent, the first sign of contraction in the factory sector in five months.
The Fed has expected the economy to improve once the war in Iraq is concluded, but the data have been weak enough in the months and weeks leading up to the war to make Fed policy makers nervous about the strength of any postwar bounce.
The Fed's interest rate target remains at a four-decade low of 1.25 percent. The Fed will be able to look at one more labor market report before the May 6 meeting of the Federal Open Market Committee.
Few economists expect the Fed to act immediately on the weak jobs data.
"Cutting rates further will not stimulate spending as long the war continues," said Brian Bruce, director of PanAgora Asset Management. "Cutting rates will do nothing to change the psychology of corporations at this point."
However, Lehman Brothers' economists "continue to expect the Fed to be forced to cut rates further, with the odds continuing to favor an intermeeting move," said Drew Matus, an economist at Lehman.
The weak data could also pressure Congress to pass a larger tax cut quicker.
"This news only serves to underscore the need for Congress to pass the president's growth package as soon as possible to ensure that every American who wants a job can find one," said Labor Secretary Elaine Chao.
"Despite these appalling economic conditions, President Bush is proposing more of the same -- massive tax cuts that largely benefit the wealthy," said House Democratic Leader Nancy Pelosi of California. "The administration has put forward this plan even though their own economic advisers say it won't create enough jobs to make up for those lost in the past two months, let alone the past two years."
The details of the jobs report were mixed.
Average hourly wages rose 0.1 percent to $15.10. The aggregate number of hours worked in the economy rose 0.3 percent as the average work week rose by 12 minutes to 34.3 hours.
Job losses were widespread throughout most sectors of the economy in March. Since the recession began two years ago, 2.1 million jobs have been lost.
Goods-producing industries cut 14,000 jobs in March, including 36,000 in manufacturing. No major manufacturing sector added workers. Construction added 21,000 jobs, a bounce back from February's weather-related losses of 42,000 jobs.
Service-producing industries cut 94,000 jobs. Retail firms sliced 43,000 workers, bringing the total lost since June 2001 to 470,000. Government cut 40,000 jobs, most were in local education.
Temporary help firms cut 48,000 workers in March, the largest decline since September. Temp jobs are often the first to be added and the first to be lost in today's flexible workplace. More than a half million temp jobs have been lost in the recession.
Transportation lost 14,000 workers in March, bringing the loss since January 2001 to 301,000. Half of those jobs were at airlines.
The jobless rate remained at 5.8 percent because 267,000 Americans dropped out of the labor force. Nearly a million Americans dropped out in the first quarter.
"The jobless rate failed to rise only because many unemployed workers stopped actively looking for jobs (a necessary condition to be included in the Labor Department's official labor force count)," said Jade Zelnik, chief economist at RBS Greenwich Capital. "This leaves little doubt that the underlying trend for joblessness is still upward."
More troubling, the number of Americans who currently want a job but are not actively looking because they are discouraged jumped by 558,000 in March to 5.02 million.
Well I live in an area with an actual unemployment rate of 10 or 15% ..Thousands of Manufactuing jobs gone leaving men in their 50s with no income, no health insurance and only jobs cleaning those toilets.
My dad used to say do not spit up in the air it always comes down in your face.
As American engineers are replaced with cheaper imported foreign engineers and entrance level tech jobs move to India.. I would suggest you save those National geographic..you may need them for toilet paper
Remember that a rising tide lifts all boats? Well a recessing tide grounds all of them too
Seven kids?
Ooooh! Ooooh! Call me! Oooh! Oooh! Call me! Call me!
What is .... work jobs you originally wanted Alec?
Have you ever heard the saying if your neighbor is out of work it is a recession..if you join him it is a depression
The economy is not in good shape unless you work for the governemt you sit on a melting job base.
Our kids are raised..5 of them college educated one career military.All doing fine, as are we. But only the foolish do not see the train coming down the track...
It used to be education was the door to a better life..today it just means that you may get that mangers position at Walmart for $25,000 a year..
We need all to be very afraid for the future..and the impact of the "New World Order"
My Dad was a successful business man that knew what life was like.
My kids say "what goes around comes around"
The Eastern religion folks call it Karma
The Bible says " the measure you use to measure other is the measure used to measue you" And warns against digging a pit for another because you will fall into it
All another way of saying "if you spit up in the air it come down in your face"
I had a very smart Dad
It is YOUR duty to help your friends who are down for the round. You know how to scrape and battle and enjoy little victories. Teach them how to channel that feeling of "no other alternative". ;^) <p? They need to answer every bell.
That's how ya do it! You have to compete hard, and innovate ceaselessly to create economic value in this world. Whether a city, business or individual. We get better all the time, we're Americans.
On the second thought I find it a very weird proposition. So if someone says that Germany, France or Canada calculates the unemplyment differently so it appears to be higher, he should emigrate over there. Strange logic.
Hmm, I do not buy the 5.8% rate. Please tell me, how one can join this special 60,000? Maybe they get hiring preferences?
>On the second thought I find it a very weird proposition.
>So if someone says that Germany, France or Canada
>calculates the unemplyment differently so it appears
>to be higher, he should emigrate over there.
I have seen people migrate for all sorts of reasons, but Grampa Dave's idea that one should emigrate because other countries' governments compute statistcs differently, is kooky.
No, I felt I didn't need to learn Spanish, the immigrants need to learn English. English is the official language in this country, not Spanish.
You are right about one thing though, it is easier to get a job in Houston if one speaks Spanish; many job ads include the line bi-lingual preferred. Plus, I wasn't desperate for a $8 an hour job, which is becoming more and more common there; wages have dropped considerably in the past decade in the Houston area. But to you that is probably a GOOD thing.
You are right about educated men in their 50s who are suddenly finding themselves out of work. We know so many people in that situation, many can now only find jobs working in stores and such. I am very grateful our situation is good, for now at least, unless the stock market totally crashes. We are also lucky as we both have good jobs.
I like that! And it is so true! I hope Arne thinks about that one at least for a little bit, that is if his mind is capable of processing such concepts.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.