The economy added 162,000 jobs for the month of March the largest increase in almost three years as reported by the labor department and the unemployment rate remained steady at 9.7%.
This was a good showing but before anyone thinks that we turned the corner on the unemployment picture one has to look deeper into the labor report and realize that a third of the increase in job’ s were temporary hiring for the census. More hiring will be conducted for the remaining months of the census; the question then becomes what happens to the unemployment rate when these temporary workers head back into the unemployment line?
The unemployment situation can’t be considered robust when most of the hiring is by the government! The private sector has to be the engine of economic growth not the government. What happens when all the government spending stops?
The private sector is waiting to see what is the fallout from the just past health care reform measure, and already we are seeing direct impact to various companies who state that they once enjoyed tax incentives to provide prescription drug coverage for their workers now will have to cover the full cost. This over time will hamper any job creation as they will have to find to spend much needed capital which could be spent elsewhere.
Until the private sector feels secure that they have an indicator what Washington will do in the future you will not see a major reduction in the unemployment rate. Help small business and you help America, if not then start seeing more breadlines!
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