Economist: Job Market Is Finally Coming Out of ‘Winter Slumber’
“The job market is coming out from its deep winter slumber,” said Moody’s Analytics Chief Economist Mark Zandi, describing the results of the March private employment report compiled by his firm and payroll processor ADP. “Job gains are consistent with the pace prior to the brutal winter,” he added.
In December, January, and February, the firm’s data showed levels of job creation were far too low to dig the U.S. economy out of the crater in the labor market created by the financial crisis and Great Recession. While the Department of Labor’s jobs numbers reflect a far more positive trend line in payroll additions in February and ADP upwardly revised the month’s job growth by almost 40,000 to 178,000 in this latest report, the ability of the U.S. economy to create jobs was once again in question. Harsh temperatures plaguing much of the United States earlier in the year took most of the blame for U.S. labor market woes, and although some analysts feared structural problems were also at fault, that concern will be wiped away if hiring numbers continue to improve as ADP’s March report suggests. The payroll processor’s National Employment Report showed U.S. employers added 191,000 jobs last month.
“The 191,000 U.S. private sector jobs added in March is slightly above the twelve-month average,” said ADP President and Chief Executive Officer Carlos Rodriguez. “Hopefully, this could be a sign there is more growth to come.” ADP’s employment report is based on data from businesses employing more than 21 million workers.