With Job growth falling nearly 50% in March to approximately 98,000, compared to January and February’s 200,000, many are asking if trends showing a continuous job growth trend is coming to a halt.
Although it was a slow month, there is no reason to worry. Job growth has averaged a 178,000 growth per month in the past 3 months. This follows 2016 job growth average, an approximate 182,000 average per month. Indicating a stable job growth. In addition, Unemployment rates fell from 4.7% to 4.5% as well as a decrease in Underemployment from 9.2% to 8.9%.
With President Trump’s proposed budget, a plethora of jobs will be cut in governmental sectors. Trump’s proposed high end tax cuts, will essentially put more money in pockets of those who’s pockets are already overflowing, resulting in little room for growth in the economy.
However, in Trump’s recent proposals, one of his promises were to “spend more money on infrastructure,” which in turnaround would be great for the economy. This would create thousands of jobs and would support future job growth. However, to this moment all if this is just a promise.
Although 1st quarter reports show a small slowdown, Barclays has said it expects the economy to actually slow in the first half of 2017, before rebounding modestly in the second half. “Given this data today, we see downside risk in our already soft expectations for the first half,” Mr. Martin said.