Total nonfarm payrolls rose by 431,000 in March, the report said, led by strong increases in recreation and hospitality (112,000), professional and business services (102,000), retail (49,000) and manufacturing (48,000).
“The economy saw strong job growth in March as consumer demand continued to rise due to declining cases of Omicron,” said Dawit Kebede, senior economist at Credit Union National. Association. “The unemployment rate fell to 3.6%, approaching a pre-pandemic level of 3.5%. A quarter of the job gains were in leisure and hospitality, as consumers feel more comfortable traveling and engaging in person.”
The surge in job creation will likely continue to push the Federal Reserve to raise interest rates as it continues to battle rising inflation. If you want to take advantage of rates before they go up, you can consider refinancing your private student loans. Visit Credible to find your personalized interest rate without affecting your credit score.
FEDERAL RESERVE RAISES INTEREST RATES: WHAT TO DO NOW
Strong jobs report should push Fed to keep raising rates, expert says
The Federal Reserve recently raised interest rates for the first time since 2018, and announced that several more rate hikes are likely to be needed this year and in 2023. The move comes as inflation recently hit its third consecutive 40-year high in February.
Now, as the jobs market continues to recover, an economist says this will mean the Federal Reserve will continue to raise rates.
“Although mortgage rates have climbed more than half a percentage point in the past two weeks, reducing affordability for many potential first-time home buyers, rising wages will certainly help somewhat compensate for this obstacle,” said the senior vice president and chief economist of the Mortgage Bankers Association. said Mike Fratantoni. “And the confidence that many potential buyers have in their financial situation also benefits from this historically strong labor market. We continue to expect the Federal Reserve to raise rates quickly to counter the surge in inflation and that this report would only add more urgency to their plans to do this.”
If you’re looking to take advantage of interest rates before they rise again, you might consider refinancing your mortgage to lower your monthly payment. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
INFLATION REACHES ANOTHER 40-YEAR HIGH IN FEBRUARY
Returning employees to work could support job growth
The economic effects of COVID-19 are fading as many businesses and even the federal government choose to bring their employees back to work in person. This change also improves job growth, says Fratantoni.
“Only 10% of workers reported telecommuting due to the pandemic in March, down from 13% in February and less than half the level from its peak,” he said. “As the federal government and others return to work in April, this number is expected to fall sharply, which could well lead to further employment changes in retail, professional services and other sectors that depend on the work in person.”
Strong job gains in March could likely be volatile, as some are based on temporary factors like a massive return to work. Fratantoni added that job growth in March was “well above what can be sustained over the longer term.”
If you want to take advantage of interest rates today before future rate hikes, consider taking out a personal loan to pay off high-interest debt. Contact Credible to speak with a loan expert and get all your questions answered.
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