March’s Non-Farm Payroll Is an Increasing Concern for the US Economy
March non-farm payroll
The US March jobs report indicated weaker improvement in the labor market. The March non-farm payroll employment in the United States (SPY) (SPXL) saw a rise of only 98,000 jobs in March 2017, compared to 235,000 jobs in February. This reading was far below the market expectation of 180,000 jobs. The report was released on April 7, 2017.
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Key highlights of the jobs report
Slower job growth occurred in the healthcare, manufacturing, construction, and mining sectors.
- The healthcare (XLV) sector added 14,000 jobs in March 2017.
- Professional and business services added 56,000 jobs in March.
- The mining (XLB) sector added 11,000 jobs in the month.
- Employment in the construction sector rose 6,000 in March.
Impact on the economy
The US labor market saw strong job growth in January and February 2017. However, the weaker growth in March indicates increasing concern about the US economy. We discussed in the previous article that the major indexes in the United States (QQQ) (SPY) showed weaker performances in March.
The delay in policy reformation is a major concern for market participants and investors. The slower improvement in the labor market is signaling that there is some concern about the demand outlook for the US (VFINX) (VOO) economy.
In the next part of this series, we’ll analyze the performance of the US ADP employment report for March 2017.