A decline is job growth has some concerned about an economic slowdown in the US economy during March. Despite adding 120,000 new jobs to the market, the growth is less than what was expected by many analysts. The good news is that new jobs were still added to the market, which means that the US economy is still growing and getting stronger. It cannot be expected to continue to grow indefinitely forever, so there is bound to be some ups and downs along the way. For the most part, the total economy has recovered since the recession began in the mid 2000’s. All around the country people are gaining employment and housing values remain steadily growing.
US Economic Growth Slows Coming Into 2nd Quarter But Still On Upturn
There are some unexpected factors that may have played into the reduced growth, such as serious amounts of snowfall on the Northern and Eastern parts of the US in March, which is very extraordinary. The difficult weather made for a difficult time for small businesses, with people staying at home more than usual, and in some cases road or city closures. Had it not been for the unusual amounts of snow, then the economy would have been booming.
Job growth also slowed in some US oil industries. Given the drastic drop in oil prices to around $50 per barrel and expectations for it to nearly cut in half again, the US oil businesses have toned down their operations. There is little reason for US-based companies to produce oil at those prices, when foreign labor is willing to pump it and ship it for less.
All across the US, wages are also still growing slowly, very slowly at this point. There is an expectation that the average wages will soon increase with retailers like Walmart and Target leading the way with $9 per hour minimum wages coming later this month. Other businesses will likely need to increase their offered wages to attract job candidates, and the modest increase in minimum earnings will ease the burdens on the government for subsidizing low-wage earners, and a slight increase in buying power for some of the country’s poorest workers.
US Economic Growth Slows Coming Into 2nd Quarter But Still On Upturn.