WASHINGTON US employers opened in March the fewest jobs in over a year, which could raise concerns about the recent slowdown in economic growth and postpone an expected rise in interest rates by the Federal Reserve .
Nonfarm payrolls rose by 126,000 last month, the fewest since December 2013, the Labor Department said Friday.
The goods-producing sector, which was hurt by soaring dollar, got rid of 13,000 positions work last month, the biggest drop since July 2013.
The unemployment rate remained at 5.5%, the lowest in more than six and a half years, partly due to the abandonment of the workforce.
“The economy is showing the negative effects of the strong dollar and the collapse of oil prices. Corporate profits have been pressed and contracts were adjusted in response to that, “said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.
Economists surveyed expected an increase of 245,000 payrolls in March, with a stable unemployment rate at 5.5%.
Prices of US Treasury debt amounted as investors returned to postpone their expectations of a rate hike from the Fed this year.
The dollar fell against a basket of currencies, while futures retreated New York Stock Exchange.
The US central bank has shown a preference for up interbank rates, which remained at levels near 0% since December 2008.
But the recent weakness of the economy led investors to postpone their bets “off” rates and some believe that even the Fed could wait until 2016.
The low increase in employment in March ended 12 consecutive months of highest increases to 200,000, the longest streak since 1994.
In addition, data from January and February were rectified to show 69,000 fewer jobs than previously reported, giving the report an even weaker tone were created.
Nevertheless, the report included some good news. Average hourly earnings, analysts closely monitored to assess when is the Fed could raise rates, increased seven cents, implying an annual increase of 2.1% in wages in EU.Reuters
No comments:
Post a Comment