This morning's Labor Department Employment Report shows that hiring has slowed, with 120,000 non-farm payrolls added in March. While the unemployment rate fell to 8.2%, the report didn't meet investors' expectations, as they expected around 200,000 jobs to have been added.
The report states employment rose in manufacturing, food services and drinking places, and health care, but was down in retail trade. The number of long-term unemployed (those jobless for 27 weeks and over) was essentially unchanged at 5.3 million in March. These individuals accounted for 42.5% of the unemployed. Since April 2010, the number of long-term unemployed has fallen by 1.4 million.
Juli says: The drop in the unemployment rate, to the lowest level since January 2009, reflected a drop in the labor force. The separate household survey, from which the jobless rate is derieved also showed a drop in employment. Investors say the report keeps the door open for further monetary policy support from the Federal Reserve.