–Number of Employed Up on Month in March but Continues to Fall on Year
–March Unemployment at 2.6% Lowest Since April 2020
By Max Sato
The seasonally adjusted average unemployment rate fell to 2.6% in March from February, when it fell to 2.7% from 2.8% in January. It was lower than the median economist forecast for 2.7% and the lowest since April 2020, when it rose to 2.6% from 2.5% the previous month. The jobless rate had been stuck in a tight range of 2.7% to 2.9% for 12 months to February.
The latest figure was below the recent high of 3.1% hit in October 2020 but still well above 2.2% recorded in December 2019, just before the pandemic triggered a global slump.
The number of employed stood at a seasonally adjusted 67.11 million in March, up 180,000 (0.3%) from February, when it was unchanged on the month. The number of unemployed fell by 90,000 (4.8%) to an adjusted 1.79 million after falling 30,000 (1.6%) the previous month.
The number of people who left for other openings fell 70,000 (9.5%) in March after gaining 30,000 (4.2%) in February while the number of those who lost their jobs or retired also fell 50,000 (8.3%) after rising 10,000 (1.7%) the previous month. The number of people who began looking for work rose 10,000 (2.2%) after falling 40,000 (8.2%)
Compared to a year earlier, the number of employed dipped 110,000 to an unadjusted 66.84 million in March, marking the sixth straight decline after dropping 350,000 in February.
The wholesale and retail industry continued to shed workers from a year earlier at a high pace while the decline in the personal services and leisure category continued amid the lingering impact of the pandemic. Construction firms also saw a smaller number of employed. Hotels, restaurants and bars as well as the manufacturing sector showed payroll increases from a year earlier for the third straight month.
The number of unemployed fell 90,000 on the year to an unadjusted 1.80 million in March, marking the ninth straight month of decline after a decrease of 150,000 the previous month.
In fiscal 2021 that ended last month, the unemployment rate fell to 2.8% from 2.9% in fiscal 2020.
The government has maintained its view that employment conditions are “picking up in some components such as job offers, while weakness remains due to the influence of the infectious disease,” according to its monthly economic report for April released last week.