March saw better than expected job gains of 216k vs expectations of 190k and the private sector added 230k jobs, 24k above estimates. There was a net upward revision of 7k to the prior two months but positively by 44k in the private sector. The unemployment rate ticked down .1% to 8.8% as the Household survey said 291k jobs were added vs a 160k increase in the size of the labor force. The all in rate fell to 15.7% from 15.9%. The disappointment within the data was a zero increase in average hourly earnings for the 4th month in the past 5 just as the cost of living continues to hit record highs. Manufacturing added 17k jobs, 13k below estimates but positive for a 5th straight month and the service sector added 199k jobs. While the federal government continues to hire, state and local continue to shed. Bottom line, our economy encouragingly continues to add private sector jobs but with wage growth not keeping pace with inflation.

Category: MacroNotes

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4 Responses to “Payrolls solid but no wage growth”

  1. tagyoureit says:

    Does that imply deflation, or a growing wealth/income gap?

  2. franklin411 says:

    We need QE3, if only to foil the GOP’s attempt to destroy the economy in Congress. Slash and burn politics might benefit the Republicans as a minority party, but destroying 1 million jobs is not good for the average American.

  3. Greg0658 says:

    F411 – I hear ya on that repossession is the teacher line (we CAN’T let it go down like that) ..
    but but but – if candy & nuts

    reprint from another thread:
    “and the function = starvation* (for a better life)”
    http://www.ritholtz.com/blog/2011/04/a-closer-look-at-nfp-fools-edition/#comment-538559

  4. [...] non-existent (revolving credit continues to fall).  Growth in spending power is very weak and is NOT keeping up with recent inflation in oil and raw materials (food) — ie Real Wages are [...]