Nonfarm payrolls for the month of March came in lower than anticipated, rising 162k following an upwardly revised 14k decline in February. January nonfarm payrolls also saw an upward revision, and now reflects a 14k increase after coming in at a 26k decline initially. Despite the headline improvement in March, the US unemployment rate remained a 9.7% for a third consecutive month.

March nonfarm payrolls were boosted by improvements in both goods-producing and service providing sectors. Goods-producing employment came in positive for since March 2007, rising 41k over the month while construction employment also managed to edge in positive territory with a 15k increase over the month. Manufacturing employment came in higher for a third straight month, rising 17k following a 6k rise prior.

Service sector employment managed its highest total in more than a year, gaining 121k in March following a 33k increase the prior month. Retail sector employment rose 15k in March following an 8k rise in February. Employment in transportation and warehousing came in at an 8k increase for the month following a 9k decline prior.

Employment in information services was down 12k in March following a 7k decrease the previous month. Employment in financial activities was down 21k in March following a 15k decline in February. Professional and business services employment was up 11k over the month following a 40k increase prior. Employment in education and health services was up 45k over the month, while leisure and hospitality employment rose 22k.

Government employment gained 39k over the month with Federal government employment up 48k thanks entirely to hiring for the 2010 Census. Average hourly earnings for private workers dropped 0.1% to $18.90 in March, reflecting the first monthly decline since April 2003.

Keith Lobodzinski

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