2013 is starting off on a good note for some sectors; the question is, will this translate to job growth? According to this Wall Street Journal article from Tuesday, recent positive figures from the consumer and housing sectors are causing economists to raise their growth estimates for the first three months of the year. The revised rate of 3.5% would be the fastest growth pace since the end of 2011 and a kick-start from the stall at the end of last year.
Job Growth Slows
Job growth, though, seems to be slowing down in March compared to February. The Labor Department showed that hiring slowed to 88,000 jobs in March, which is less than half of the estimated amount. These underwhelming results are tempering optimism about sustainable economy growth. It is in following with a recent trend of strong winter months and then a seasonal slowdown in spring- what some call the “April Fool’s Economy.”
While looking at month-to-month data can be useful, economists warn not to put to much stock into monthly results. It remains to be seen whether economic growth will follow recent year trends and slow down over the year, or break the chains of post-recession blues. Like the old adage warns, let us hope for the best while expecting the worst.