Jobs: Not as bad as it looks

Job application by Shutterstock.com

Article Highlights

  • Most economists were expecting today’s jobs report to reveal at least 200k jobs added in march.

    Tweet This

  • The latest jobs report is not as bad as it looks writes @AEIecon’s Kevin Hassett.

    Tweet This

  • As for sequestration, the spending cuts are just too small to be that visible in the jobs data, especially this early.

    Tweet This

There has been so much good economic news dribbling in recently that most economists were expecting today’s jobs report to reveal that at least 200,000 jobs were added in March. The data are finally beginning to look more normal, auto sales have been climbing smartly, for example, and a string of good but not great reports was to be expected. Given that, the news that the economy only created 88,000 jobs comes as a kick in the teeth.  We can expect the Keynesian choir to assert that sequestration is beginning to open the gates of hell.

There are two responses to that. First, the report is not as bad as it looks. Upward revisions to previous months added a whopping 61,000 jobs, so the positive jobs news we got today is closer to 150,000 for the first quarter as a whole. If one adds the fact that upward revisions are becoming the rule rather than the exception, it is possible that March will end up looking as anticipated in the fullness of time.

As for the sequestration, the spending cuts are just too small to be that visible in the data, especially this early.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Kevin A.
Hassett

What's new on AEI

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 01
    MON
  • 02
    TUE
  • 03
    WED
  • 04
    THU
  • 05
    FRI
Wednesday, September 03, 2014 | 9:00 a.m. – 10:30 a.m.
From anarchy to Augustus: Lessons on dealing with disorder, from Rome’s first emperor

We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.

Wednesday, September 03, 2014 | 12:00 p.m. – 1:30 p.m.
Multiple choice: Expanding opportunity through innovation in K–12 education

Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.

Thursday, September 04, 2014 | 12:00 p.m. – 1:30 p.m.
How conservatives can save the safety net

Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.

No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.