Slow but welcome progress for US jobs market

The US economy posted its largest job gain in three years in March, while the unemployment rate remained at 9.7% for the third month in a row, according to figures out today.

The increase is the latest sign that the economic recovery is sustainable and that the job market is beginning to improve. But the jobs healing is likely to be slow, and most economists do not expect new hiring to be fast enough this year to rapidly reduce the unemployment rate.

The Labour Department said employers added 162,000 jobs in March, the most since the recession began but below analysts' expectations of 190,000. The total includes 48,000 temporary workers hired for the US Census, also fewer than many economists forecast.

Private employers added 123,000 jobs, the most since May 2007.

There are 15 million Americans out of work. More Americans entered the work force last month, which prevented the increase in jobs from reducing the unemployment rate.

Manufacturers added 17,000 jobs, the third month of gains. Temporary help services added 40,000, while health care added 37,000. Leisure and hospitality added 22,000.

Even the beleaguered construction industry added 15,000 positions, although that probably reflects a rebound from February, when major snowstorms may have kept many construction workers off payrolls.

The average work week increased to 34 hours from 33.9, a positive sign. Most employers are likely to work current employees longer before they hire new workers.

The department also revised January's job total to show a gain of 14,000, up from a previously reported loss of 26,000. February's job numbers were also revised higher by 22,000 to show a loss of 14,000.

But more Americans said they were working part-time even though they preferred full-time work. When they and discouraged workers who have given up searching for jobs are included, the "under-employment" rate ticked up to 16.9% from 16.8%.

The jobs report followed positive data earlier this week which showed consumers were increasing their spending and manufacturing activity was growing at its fastest pace in more than five years.

Economists are increasingly confident that the country will avoid a "double-dip" recession, in which growth slows after a short burst at the end of last year.

The economy is likely to expand at a roughly 3% pace in the current January-to-March quarter, analysts predicted, roughly half the 5.6% pace seen in the final quarter of last year.