The unemployment rate drops to 7.6 percent as 496,000 leave the labor force and 290,000 fewer are jobless.
The economy only added 88,000 jobs in March, but the unemployment rate dropped to 7.6 percent, according to figures released at 8:30 this morning by the U.S. Bureau of Labor Statistics.
Reuters on Thursday was projected 200,000 jobs would be added. Stock market futures tanked after the announcement.
The civilian labor face dropped by 496,000, figures indicate. But there were 290,000 fewer people unemployed in March than in February. The participation rate dropped to 63.3 percent.
Professional and business services, health care and construction continued to add jobs last month. Retail, which had been adding 32,000 jobs a month for the last six months, shed 24,000 jobs last month, figures show. It was not immediately clear if the drop in retail jobs had anything to do with the increase in the payroll tax, giving consumers fewer shopping dollars. The struggling U.S. Postal Service cut 12,000 jobs in March.
Government slashed only 7,000 jobs after adding 14,000 in February, so it appears the sequester didn't have an immediate negative impact. It is not clear if the sequester had a psychological impact on overall hiring.
"It is important to bear in mind that the March household and payroll surveys are the first monthly surveys to look at employment since the beginning of sequestration," Alan B. Krueger, chairman of the Council of Economic Advisers, said in a news release from the White House. "While the recovery was gaining traction before sequestration took effect, these arbitrary and unnecessary cuts to government services will be a headwind in the months to come, and will cut key investments in the nation’s future competitiveness. The Congressional Budget Office has estimated that the sequester will reduce employment by 750,000 full-time equivalent jobs by the end of the year. Now is not the time for Washington to impose more self-inflicted wounds on the economy."
Not included in today's figures is a 28,000 week-to-week jump in those filing new unemployment claims for the week ending March 30.
In February, the economy added 236,000 jobs and the rate dropped to 7.7 percent.
Revisions today from January added 29,000 jobs and February revisions added 32,000 jobs.