BY: Adam Gavriel
The first signs of government spending may have just reared its ugly head on the United States unemployment market. According to an article published today by the Denver Post, the number of Americans seeking unemployment aid jumped by 28,000 last week, the third such spike in three weeks. Weekly applications rose to 385,000, the highest number since last November.
Early reports are pointing to the indication that companies are beginning to slow hiring after four months of strong job growth in the United States. From the article:
“We suspect the surge in the last two weeks reflects seasonal adjustment problems more than any fundamental change in the trend, but of course that remains to be seen,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics, in a note to clients.
With the March jobs report set to be released tomorrow, economists are expecting nearly 200,000 jobs to be added to the report. These economists may have to check their numbers however, as more and more Americans continue to seek government aid. Growth is not unexpected, however it is expected to be at a much calmer level than that of which we have seen in recent months as companies begin to slow down.
“Two reports Wednesday, however, suggested companies may have grown more cautious last month. Services companies grew in March but at a slower pace than in February, according to the Institute for Supply Management, a trade group. Service firms, which include retailers, hotels, restaurants and financial companies, cut back on hiring and a measure of new orders fell.”
Several economists have already begun revising their expected numbers for the released March jobs report.
The recovery of the United States job market continues to be a roller coaster ride for many Americans seeking work. At moments it looks like it is ready to boom at any second, but then takes an unexpected fall-off.
While economists are expecting a positive jobs report, it will be at a slower pace than what we have been seeing the past few months. Any growth is certainly a positive, but in order to get the country moving forward again, the pace needs to quicken.
Unfortunately, with government spending cuts looming on the horizon, the trend beginning in March of slow growth is set to continue.
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