200,000 new positions were created in March by private companies (according to the latest count from payrolls processor ADP and Moody's Analytics). Most of these jobs are being created within the vast variety of service industries. In fact, 191,000 of the total 200,000 positions were service positions. This number of new service positions was actually lower than that of February's 204,000. With that being said, the 200,000 new jobs created in March was exactly what was estimated for the month by Wall street. Companies of 50 and fewer employees created most of the total jobs in March at 86,000 and companies of 500 and above employees only created 39,000 jobs in the same month. Services like trade, transportation, and utilities lead the job creation race with 42,000 while professional and business services trail with 28,000. Construction has even experienced high position increases with 17,000 along with 14,000 in financial activities. Small to medium business are without a doubt thriving in the job market while creating so much opportunity for more and more people. A high raise in minimum wage like that of NYC's and California's $15 wage target is something that could slow down the current job increases we are experiencing and even significantly lower it. "The job market continues on its amazing streak. The March job gain of 200,000 is consistent with average monthly job growth of the past more than four years," Mark Zandi, chief economist at Moody's, said in a statement. "All indications are that the job machine will remain in high gear." I hope this job/position increase will stay around for quite sometime and eventually level out without any decrease.
This is really good news for the job market as there are still many people who are seeking employment. Service industries are becoming the greater majority of business in the world and as a result there are fewer and fewer factory and machinery jobs available causing workers to change jobs. This example could be a great way that the economy could return to the natural rate of unemployment and fuel the services market as well.
ReplyDeleteMy blog post was on a similar article that focused on the uptick in jobs this past March. It is very hopeful to see such growth, especially in service industries. It is incredible to see how the vast majority (191,000/200,000) of the jobs being created are in the service industry. This is a little bit worrisome since some workers may not have the skills to qualify for a job in the service industry, and, as the numbers show, there are not many jobs available in other industries. I am interested to see if this improvement in the job market continues.
ReplyDeleteIt is a great surprise to see a rise of 200k jobs in march but what the article doesnt tell us is that how many people retired or were fired during the same time period. As increase in job is always great for an economy but whats bothering is that it can cause a drop is wages with increased inflation and taxes which can be further bad for the economy.
ReplyDeleteIt's interesting to see that over 95% of the jobs created were in service industries. Goes to show that even though America's manufacturing industry is still relevant, it has become a much tougher sector to find a job in. There isn't a lot of job growth in the manufacturing industry either, showing that globalization has really effected the kinds of jobs American people can acquire.
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