In a reversal of recent trends, today’s new data from the U.S. Bureau of Labor Statistics show that employers have cut back sharply on hiring. Government cutbacks have already been slowing our nation’s economic growth and are now actively pulling employment downward, but the worst may be yet to come.
The sharp across-the-board cuts in government spending implemented March 1 are only beginning to show their ugly consequences. While it’s too early to know what the full impact will be on the unemployment rate, government spending cuts are already stealing wind from the sails of the recovery.
In March the U.S. economy only added 88,000 new jobs, but the unemployment rate ticked down slightly to 7.6%. The employment data for January and February were revised upward by a total of 61,000 jobs, and over the past three months, the economy has added an average of 168,000 jobs per month. At this rate, the United States will get back to full employment in 2020.