Signaling Jobs
Recovery, Payrolls Surged in March
Published: April 2, 2010 - New York Times
After losing eight million jobs since the recession
began in December 2007, payrolls finally surged in March, the Labor Department
reported on Friday. Employers added 162,000 nonfarm jobs last month.
Nationwide, the unemployment rate held steady at 9.7 percent.
gWe are beginning to turn the corner,h said President
Obama, speaking in Charlotte, N.C., calling it gthe best news wefve seen on
the job front in more than two years.h
Though everything seems to be moving in the right direction, he was careful
not to raise expectations too high. gIt will take time to achieve the strong and
sustained job growth that we need,h President
Obama said.
The economy needs to add more than 100,000 jobs a month just to absorb new
entrants into the labor market, let alone provide a livelihood for the 15
million Americans already looking for work. Without constant, robust growth, the
unemployment rate wonft budge. Indeed, the Congressional
Budget Office has projected that the rate will hover around 10 percent for
the rest of the year.
Still, economists saw signs in the latest report that the economy was poised
to make steady, if slow, progress.
gEvery major industry, except financial services and information, showed
gains in employment,h John Ryding, chief economist at RDQ Economics, said. gFrom
manufacturing, to construction, to retail, it really didnft matter. Theyfre all
hiring now.h
Private-sector job
growth was again strongest in temporary help services and health care. The
nation added 40,000 temporary service jobs last month, indicating that many
employers were testing the waters before taking the plunge with a permanent
hire. The health care industry, which grew steadily even during the depths of
the recession, expanded by 27,000 jobs in March.
The March report may have been inflated, though, by a rebound from February
when many people could not work because of snowstorms. Additionally, nearly a
third of the hiring in March was temporary work on the 2010 census.
Though they know their new jobs are fleeting, many of the 48,000 new census
workers are counting their blessings. To them, a job is a job, a closed hole in
their résumés and maybe even a bridge to permanent employment elsewhere.
Gregory A. Butler, a 41-year-old union carpenter in West Harlem, had been
unable to find work since November. Then last month, he got a call from the Census
Bureau asking him to work as a supervisor. Unlike most of the departmentfs
new hires, who are part-time employees, he expects to work 40-hour weeks for
about two months, at $20 an hour.
gThis is a very good transition opportunity for me, since Ifm trying to start
a new career as a freelance writer,h Mr. Butler said. gI donft mind that itfs
temporary. Itfs important work, and it gets me off unemployment.h
The temporary hiring of thousands of census workers will continue through the
end of the summer, economists noted, making it more difficult to gauge the
underlying strength of the labor market.
Many of the jobs created last month were part time for people who really
wanted full-time work. That caused the broader measure of unemployment along
with those who are underemployed to tick up, to 16.9 percent, from 16.8 percent
in February.
The situation looks worse for the long-term unemployed. The average length of
time the jobless have been out of work has reached 31.2 weeks, the longest
period since the government began keeping records in 1948.
Fridayfs report revised employment upward for the previous two months, and
was otherwise largely in line with the expectations of forecasters.
While the stock market was closed for Good Friday, the bond market reacted
favorably to the report.
Treasury
prices fell, sending their yields higher. The yield on the 10-year Treasury note
rose to 3.94 percent, from 3.87 percent late Thursday, its highest level since
last June. Many types of consumer loans are pegged to the yield on the 10-year
note, so an increase could raise the cost of borrowing to buy homes and other
goods.
The economy has shown signs of renewal in recent months with the help of
significant government spending. Analysts generally say they believe the
recovery will endure even in the absence of stimulus programs.
gStrength effectively feeds itself,h said James F. OfSullivan, chief
economist for MF
Global. gWhat happens to the labor market is key to perceptions about the
sustainability of the recovery.h
But substantial worries persist. Consumer spending remains tepid, though it
has improved modestly in recent months. Real estate markets are still severely
depressed, holding back hiring in critical industries like construction. And
many state and local governments, facing ballooning deficits, are poised to make
severe cutbacks. Last month, they cut 9,000 jobs.
The long-term unemployed find little comfort in one month of good news,
especially with many nearing the end of their government assistance.
In Roseville, Mich., a suburb of Detroit, Mark R. Hamlin, is nearing his
fourth year without work. Mr. Hamlin, 49, was laid off from his position as a
sales manager for a copper wire distributor just as the auto industry began to
collapse. Though his wife has a job, the Hamlins struggle to keep up with a $900
monthly mortgage payment and $5,000 in credit card debt. To cut costs, they keep
the heat at 55 degrees.
With his latest round of unemployment benefits expiring this week, Mr. Hamlin
said he worries that he may not be able to give his 4-year-old daughter Kara a
stable upbringing.
gIfm hoping, Ifm praying, I have my fingers crossed,h Mr. Hamlin said. gIfve
got to find something this year. Ifve got to find something this year.h
Liz Robbins and Peter Baker contributed reporting.