Job Growth Slows

The U.S. economy added a mere 98,000 jobs in March 2017, a significant slowdown from the 219,000 jobs added in February and the 216,000 added in January. We do not believe this abrupt slowdown is cause for concern. Even with this moderation, employment growth in the first quarter of 2017 was solid—averaging 178,000 jobs per month, and represents a substantial increase from the monthly average of 148,000 jobs added in the fourth quarter of 2016 and is roughly on par with the average of 187,000 per month for 2016 as a whole. The March job gains, though comparatively small, continues the record-setting streak of employment growth that began in the fourth quarter of 2010. Nonfarm payroll employment has now increased for 78 consecutive months.

• U.S. job growth disappoints in March, but not a cause for concern.

• Unemployment falls to its lowest level in nearly a decade.

• Tightening labor markets will begin to challenge real estate demand metrics.

• Economic expansion remains firmly intact, tracking to be the longest on record.

Also inside: Did you know that the New York area created 32,800 office-using jobs and not the 3,000 originally reported? Learn more in the Appendix: Surprise Revisions to Employment Figures.

The Employment Tracker provides analysis of the latest U.S. monthly labor market trends and their impact on both commercial real estate and the macro economy.

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To learn more, visit Cushman & Wakefield’s Research page.

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