Looking beyond the somewhat disappointing headline number of 98,000 jobs gained last month, the March jobs report still offers a lot to feel OK about, especially after two very strong months to start the year. Much of the slowdown in job growth can likely be attributed to temporary weather-related factors, with Winter Storm Stella likely playing a role in keeping hiring low just at the same time the monthly hiring survey was conducted. The national unemployment rate fell to 4.5 percent and the labor force participation rate held steady, though big losses in the retail sector are somewhat worrisome. Construction hiring grew modestly, continuing a string of recent gains, though was down substantially from much larger gains earlier in the year. Still, housing starts and permits have increased strongly to start the year, offering more evidence that the March slowdowns were attributable to adverse weather and giving hope to home buyers struggling with limited inventory. Most importantly, wages were up substantially from a year ago, growing at a pace that should help keep housing affordability largely in check, especially for renters. This is a generally good report, one that confirms the economy continued to chug along in the right direction through the first quarter of 2017.
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