Well, this morning's job data was even worse than expected. BLS announced that the unemployment rate shot up to 5.1% in March and nonfarm payroll employment dropped by 80,000. Wall Street had expected payrolls to drop by 60,000 (see earlier posting). It could have been even worse. As the Wall Street Journal reports, "Had it not been for a rise in government jobs last month, payrolls would have fallen by around 100,000."
Interestingly, the involuntary underemployed problem didn't increase as much as the general unemployment problem. In past two months, the involuntary underemployed (part-time work for economic reasons) increased by 100,000 per month (see earlier posting). In March, the increase was only 30,000. This is not necessarily good news, however. The lower number combined with the higher unemployment number suggests that employers are laying people off rather than simply cutting back on hours.
The biggest losses were in manufacturing, but business and professional services, financial services, information services and retail jobs also declined. Leisure and hospitality employment increased -- but only because of a large increase in food services and drinking places. (So maybe we are all out at the bar crying in our beers?).
Not good news - for either the industrial or the I-Cubed Economy.
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