Business

US economy adds 236,000 jobs in March, unemployment rate falls to 3.5%

Published

2 years ago

April 9, 2023

The March jobs report showed hiring slowed last month but likely not by enough to ease pressure on the Federal Reserve to raise interest rates in its efforts to slow inflation.

The U.S. economy added 236,000 jobs in March while the unemployment rate fell to 3.5%, data from the Bureau of Labor Statistics released Friday showed.

Here are the key figures from the report, compared to last month’s revised numbers:

Nonfarm payrolls: +236,000 vs. +326,000
Unemployment rate: 3.5% vs. 3.6%
Average hourly earnings, month-over-month: +0.3% vs. +0.2%
Average hourly earnings, year-over-year: +4.2% vs. +4.6%

By industry, leisure and hospitality was again the largest contributor to last month’s job gains with 72,000 new workers coming into the sector during March. Temporary help services was the second-largest contributor to job growth last month with 65,000 workers joining the sector.

The labor force participation rate also ticked higher in March, rising to 62.6% from 62.5% in February. Average weekly hours worked fell slightly to 34.4 from 34.5.

Over the last six months the U.S. economy has added an average of 334,000 jobs each month.

Following Friday’s release, markets are now pricing in a 67% chance the Federal Reserve raises rates by another 0.25% in May, up from 50/50 odds of a hike on Thursday ahead of the numbers, according to data from the CME Group.

Forecasts from the central bank released last month suggested one additional 0.25% rate increase was likely this year.

Still, economists see March’s jobs data as beginning a period of slower growth for the U.S. labor market that will eventually result in a rise in the unemployment rate.

“The 236,000 gain in non-farm payrolls in March adds to the evidence that the economy’s strong start to the year was partly a weather-related blip, with momentum now fading again,” wrote Andrew Hunter, deputy chief U.S. economist at Capital Economics, in a note on Friday.

“With the sharp fall in job openings and upward trend in jobless claims also pointing to a cooling in labour demand, and the drag from the recent banking turmoil still to feed through, we expect employment growth to slow more sharply soon.”

The Fed expects unemployment to rise to 4.5% by the end of this year.

U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States, on March 22, 2023. The Fed raised interest rates by 25 basis points at the conclusion of its two-day meeting on Wednesday, lifting the target range of the federal funds rate to 4.75-5 percent. (Photo by Liu Jie/Xinhua via Getty Images) — U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States, on March 22, 2023. (Photo by Liu Jie/Xinhua via Getty Images)

Earlier this week, data on initial jobless claims out Thursday and private payroll data from ADP out Wednesday suggested the labor market is cooling.

A slowdown in wage growth — from 4.6% over the prior year in February to 4.2% in March — served as another sign in Friday’s report some labor market pressures are easing.

Initial claims are seen as the best real-time indicator of stress in the labor market; this measure has shown some signs of increasing in the last few months, with claims totaling 228,000 last week. ADP’s report out Wednesday morning showed there were 145,000 jobs added to the private sector last month, below expectations.

Additionally, job openings data for February showed open roles in the economy continue to fall, another potential signal the labor market is slowing. February marked the first time since June 2021 there were fewer than 10 million jobs open as of the end of the month.

“Despite weakening in employment readings in the run-up to the non-farm employment report, employment growth has not yet collapsed though there are visible signs of continued moderation,” wrote Nationwide chief economist Kathy Bostjancic in a note on Friday.

“In all the Federal Reserve will be pleased by the details of the employment report, but still is supportive of another rate hike in May — which we think could be the last for the tightening cycle. Followed by a long pause.”

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Business

Carry On Canadian Business. Carry On!

Published

20 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

23 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

23 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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