Disappointing U.S. Report Shows 126,000 Jobs Added in March

 

The March job numbers mark the lowest job surplus since December of 2013. The report is below analyst expectations of at least 244,000, and the energy industry cut 11,000 jobs for March. So far, the energy industry has lost 30,000 jobs in 2015.

 

 

The March job numbers mark the lowest job surplus since December of 2013. The report is below analyst expectations of at least 244,000, and the energy industry cut 11,000 jobs for March. So far, the energy industry has lost 30,000 jobs in 2015.

Certain politicians and media personalities tend to overhype the U.S. recovery, but the data shows a different story. While it is true that Wall Street is doing well under the Obama Administration, Main Street is still feeling the squeeze of an economy that is not producing enough high-paying jobs to keep up with rising costs and a higher standard of living. In fact, the Federal Reserve Bank of Atlanta predicts the economy grew zero percent in the first quarter in comparison to last year. In addition, some analysts claim the economy is actually slowing down, bursting the bubble of those who are so ecstatic of a so-called economic boom. True, the economy gained some steam in 2014, but 2015 is getting off to a rough start.

Wage Slump Remains a Problem

Wages have been stagnant for over two decades. Wage growth only went up 2.1 percent in 2014, going from an average hourly wage of $24.34 an hour to $24.86 an hour in 2015. Wage stagnation is also the reason why consumer confidence and spending are down, contributing to the lack of economic growth. Retail sales have slumped as well, and there has been an underwhelming amount of new homes built.

When the Fed Will Raise Rates

After the disappointing job showings in March, analysts predict the Fed may not raise interest rates in June as predicted. Raising rates would be the first time in around a decade. Many credit the low rates for giving a jolt to the economy and helping Wall Street, but an interest hike will affect everyone. For example, savers will benefit from the added interest in their accounts, while having a negative impact on borrowers in the areas of mortgages and car loans. A rate increase may also hurt stocks and hamper wage growth.

Optimism Persists

Despite the bleak numbers, many experts contend that the economy will pick up in spring and summer, including a better jobs report in the following months. Industries such as healthcare, business and retail added the most jobs, with the healthcare field adding 360,000 jobs in the past year. More good-paying jobs are necessary to spread prosperity across the board. The economy needs a fundamental restructuring to procure long-term sustainable jobs. Until then, the economy will only continue to suffer.