* Nonfarm jobs rise 120,000 in March
* Private sector payrolls gain 121,000
* Unemployment rate falls to 8.2 percent from 8.3 percent
By Lucia Mutikani
WASHINGTON, April 6 (Reuters) – U.S. payrolls rose far less
than expected in March, keeping the door open for further
monetary policy support from the Federal Reserve, even as the
unemployment rate fell to a three-year low of 8.2 percent.
Employers added 120,000 jobs last month, the Labor
Department said on Friday, the smallest increase since October.
Economists polled by Reuters had expected nonfarm employment
to increase 203,000 and the jobless rate to hold at 8.3 percent.
The weak employment growth last month likely reflected the
fading boost from unseasonably warm winter weather. The payrolls
count for January and February was revised to show just 4,000
more jobs created than previously reported.
The drop in the unemployment rate, to the lowest level since
January 2009, reflected a drop in the labor force. The separate
household survey, from which the jobless rate is derieved also
showed a drop in employment.
The weak employment gains could hurt President Barack
Obama’s chances for re-election in November. The unemployment
rate has fallen from 9.1 percent in August.
The painfully slow recovery in the labor market is a concern
for Fed Chairman Ben Bernanke, who is keeping open the option of
further monetary policy support for the economy if the
unemploymnt rate remains stubbornly high.
Minutes of the Fed’s March policy meeting released this week
showed policymakers seeing a broadening of the economic
recovery, leaving them slightly less inclined to launch a third
round of bond purchases, known as quantitative easing, to spur
growth.
The private sector added 121,000 new positions in March,
while government employment edged down 1,000.
Manufacturing enjoyed another month of strong job gains,
with factories adding 37,000 new positions, helped by carmakers
trying to meet pent-up demand for motor vehicles. Factory jobs
increased by 31,000 in February.
Construction hiring fell 7,000, the second straight monthly
decline. In the huge service sector, gains were in healthcare,
professional and business services categories. Temporary help
fell 7,500 after rising 54,900 in February.
Despite the weak employment gains last month, average hourly
earnings rose 5 cents.
The workweek dipped to 34.5 hours from 34.6 hours in
February.
