WASHINGTON—Jobs were up by a less-than-expected 98,000 in March – the lowest monthly gain since last May – but NAFCU Chief Economist and Director of Research Curt Long said broader trends remain positive.
"It would be a mistake to make too much of a single report, as the May 2016 report proved to be a one-off aberration," Long wrote in a NAFCU Macro Data Flash. "Weak readings in the construction and retail sectors likely owed something to Winter Storm Stella which pounded the Northeast in March."
"It would not be a surprise to see a strong bounce back in April, along with upward revisions to the March figure," Long continued.
The unemployment rate decreased to 4.5% in March – the lowest rate since 2007. The professional and business sector saw the largest growth at 56,000 jobs, while the retail sector lost 30,000 jobs, Long noted.
Long said the Federal Open Market Committee is unlikely to overreact to the reported slowdown. He noted there will be two more jobs reports before the committee's June meeting, which he reminded is the soonest the committee is likely to raise interest rates again.