Jobs Created, Unemployment Rate Down

Department of Labor data for March shows that the U.S. economy created 216,000 jobs and that the unemployment rate fell to 8.8%.  This compares to expectations by economists of 195,000 jobs created and no change in the 8.9% unemployment rate.

Analysis: The theme on the blog this week has been the various economic data that are beginning to create an image of a recovered economy.  From the increase in consumer incomes and spending, to the ADP jobs created survey showing 201,000 private sector jobs created, to jobless claims remaining below 400,000, to today’s news that the unemployment rate has fallen, the U.S. economy has recovered.

Only an unemployment rate of 8.8% remains as a last hurdle to be overcome.  However, since November 2010 the unemployment rate has fallen by a full percentage point.  Plus, the norther hemisphere’s summer is coming, when people generally feel better about life, creating a “wind in their sails” kind of feeling.  In other words, I expect the U.S. economy to continue to robustly create jobs.

Another sign of economic stabilization is the predictability and alignment of different surveys.  Earlier this week the ADP jobs created survey showed 201,000 private sector jobs created, meanwhile the Department of Labor figures today show that the private sector created 230,000 jobs, with the public sector losing 14,000 jobs.  The closeness of these two data series is indicative of an economy that is operating as expected.  Significantly, this makes business and government planning easier and more effective, too.  All good things that contribute to real economic growth, gross domestic product (GDP) expansion, and prosperity.

Importance grade: 9; that U.S. businesses added so many employees in a month where uncertainty in the Middle East was high and there was a simultaneous monumental natural disaster and nuclear disaster in the world’s third largest economy is all evidence of a healthy, strong economy.

Jason