<img height="1" src="https://www.facebook.com/tr?id=1556205978036170&ev=PageView&noscript=1" width="1"/>

Economics Professor Bill Seyfried Comments on Today's Jobs Report

April 6, 2012 - Today's job market report suggests that previous job market reports were biased upward, probably due to seasonal adjustments and extra warm weather. The report indicated that 120,000 jobs were created in March, down considerably from over 200,000 per month in recent months. In addition, the unemployment rate declined to 8.2%, but this was due to more people leaving the labor force as the household survey (used to estimate the unemployment rate) showed a loss in jobs. A more precise measure of the labor market is hours worked, which declined in March, led by declines in construction and manufacturing. What sectors led to the relative weakness in the job market? Temp agencies added 55,000 jobs in February, but lost 7500 in March (a difference of 62,500, which accounts for a majority of the decline). The rest of the weakness appears to be spread throughout other sectors, with slowdowns particularly evident in health care and information services.

Are there any positive news from the report? Besides the decline in the unemployment rate, the broad measure of unemployment (U6) declined from 14.9% to 14.5% This was mainly due to a decline in those working part-time for economic reasons. As part-time employment fell, more people were working full time.

Rather than reflecting a significant slowdown in the job market, I think the report indicates limitations in the data, due to seasonal adjustments and unusually warm weather in many parts of the country. As noted elsewhere, it's going to be hard for the job market to improve significantly unless economic growth also strengthens, which is not expected in the near future.

Read more at Dr. Seyfried's blog.

Fill out my online form.
Interested in Learning More?
Please fill out the form below and download our FREE Program Guide.
We value your privacy
News and Resources



CFAM: Exhibition Tour--Time as Landscape...

Join Cornell Fine Arts Museum curator Amy Galpin, PhD as she gives a tour of the exhibition Time...



Cornell Fine Arts Museum Art Tour (12/16/2017)

Join us this Saturday for an art tour at The Cornell Fine Arts Museum. Meet your docent in the...

Former Head of Siemens USA Named Executive in Residence at the Crummer Graduate School of Business

Read More

Energy and Geo-Environmental Executives Join Crummers Board of Overseers

Read More

Forbes Ranks Rollins College Crummer Graduate School #1 MBA Program in Florida

Read More