New jobs in the US recorded the largest decline in March from the last six months. The US employers have created 103,000 jobs amid job cuts in construction and retail, informs the US Department of Labor. This is the lowest level since September and follows the increase in jobs by 326,000 in February. The jobs created in March were below the average of 202,000 in the last three months and close to the level of approximately 100,000 jobs needed to meet the growing working-age population.
The unemployment remains at 4.1% for the sixth consecutive month, despite the decline in the workforce. The economists predicted that the US economy would add 193,000 jobs last month and unemployment to fell to 4.0%.
Average hourly wage increased by 0.08 USD, or 0.3% last month, after adding 0.1% in February. Thus, the rise in average hourly wages reached 2.7% on an annual basis, up from 2.6% in February.
The economists say an annual wage increase of at least 3% is needed to raise inflation to the Federal Reserve target of 2%. There is hope that wage growth will accelerate in the second half and will allow the Fed to continue raising interest rates.