Job Growth Surges In Major Win For Trump – But Is It Too Good To Be True? – Financial Freedom Countdown
The U.S. economy added 228,000 jobs in March, far surpassing expectations and signaling strong labor market momentum. Health care, transportation, and retail sectors led the gains. While these numbers appear to boost confidence in Trump’s economic direction, many economists warn this surge might be short-lived.
Unemployment Ticks Up as Market Starts to Wobble
Even with the strong hiring, the unemployment rate inched up to 4.2% from 4.1%.
This rise reflects more people reentering the workforce in search of jobs, a sign that labor demand may not be keeping up with the influx.
Though the labor force participation rate increased slightly to 62.5%, the growth in job seekers could signal cracks in the market’s stability.
DOGE Layoffs Begin to Surface—With More to Come
The Department of Government Efficiency (DOGE) has begun trimming the federal workforce, with March recording a loss of 4,000 government jobs.
This follows an 11,000 drop in February. While court challenges have delayed some layoffs, analysts warn that upcoming reports may reflect a more substantial impact from DOGE’s sweeping cuts.
Retail and Healthcare Jobs Rise, But Government Shrinks
Job growth was strongest in health care, social assistance, warehousing, and retail.
However, federal employment declined for the second month in a row.
Outplacement firm Challenger, Gray & Christmas reported 275,240 job cuts in March, a 60% spike from February. This figure ranks as the third-worst month for layoffs since records began in 1989, surpassed only by April and May of 2020.
DOGE-related cuts and federal contract cancellations led the decline.
Many layoffs have yet to be reflected due to data lags caused by severance periods and administrative delays, indicating further federal job losses may show up in future reports.
Wage Growth Slows, and Permanent Job Losses Creep Higher
Average hourly earnings rose by 0.3% in March, with year-over-year growth slowing to 3.8%. While temporary layoffs eased, the number of permanent job losses continued to rise—a troubling sign that deeper economic restructuring may be underway.
ADP and BLS Agree: Hiring Still Up, But Losing Steam
Private payroll firm ADP also reported moderate job gains, but noted a slowdown in wage growth, especially for job switchers. The BLS echoed this with slower hiring figures and signs that demand for labor is cooling.
Despite surface-level strength, underlying metrics point to fatigue in the job market.
Prior Report Showed Massive Job Growth Revision Slashes 598,000 Jobs – White House Blamed Biden
Overshadowing the March gains is a sweeping downward revision to earlier jobs data.
Total U.S. employment for the year ending March 2024 was revised downward by 598,000 – a historically significant downgrade, though smaller than the 818,000 reduction initially estimated by the Labor Department in August.
The revision, based on state unemployment records that track actual payroll data rather than monthly survey estimates, indicates the nation added an average of 50,000 fewer jobs per month from April 2023 to March 2024.
Fed Report Had Revealed Overstated Job Growth in 25 States
Although the prior report’s downward revisions may seem shocking to most Americans, the estimates released by the Federal Reserve Bank of Philadelphia in December revealed troubling discrepancies in reported employment data across the United States.
From March through June 2024, job growth estimates differed sharply in 27 states when compared to earlier figures provided by the Bureau of Labor Statistics’ (BLS) Current Employment Statistics (CES).
The revised findings, based on more comprehensive employment data, show that 25 states posted lower-than-expected job changes, raising concerns over the accuracy of preliminary economic indicators and the pace of national employment recovery.
Massive Jobs Data Revision Under Biden, Largest Since the Great Financial Crisis
Each year, the BLS revises the data from its monthly payroll survey of businesses and benchmarks the March employment level against figures from the Quarterly Census of Employment and Wages (QCEW) data.
This year’s preliminary data reveals the largest downward revision since 2009, indicating that the labor market wasn’t as robust as initially portrayed.
Contrast Between the Labor Markets
The White House quickly placed the blame for the prior jobs report’s lower revisions on Biden’s policies.
“Jobs report reveals the Biden economy was far worse than anyone thought, and underscores the necessity of President Trump’s pro-growth policies,” White House press secretary Karoline Leavitt said in a statement.
National Economic Council Director Kevin Hassett added, “The truth is that we’re inheriting a very difficult jobs market because of Joe Biden’s terrible policies.”
The strong current job report has come as a welcome surprise to many analysts.
Markets Shrug Off Strong Jobs Report Amid Tariff Shockwaves
Despite the positive jobs report, financial markets remained in turmoil following Trump’s sweeping tariff announcements.
Thursday’s market selloff was the worst since 2020, and analysts say fears of a trade war are now overriding any optimism tied to labor data.
All Eyes on May: Next Jobs Report Could Bring a Reckoning
The next jobs report, due May 2, is already being anticipated as a potential turning point.
As DOGE-driven cuts take fuller effect and Trump’s tariff fallout deepens, economists expect that the rosy headline numbers may not last.
Could the March report be the last bright spot before a more turbulent labor landscape emerges?
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While singles may have fewer Social Security filing options than married couples, smart planning around when to claim benefits can pay off for anyone, including those flying solo.
Maximize Your Benefits: Essential Social Security Strategies for Singles
Planning to Retire? Check Out The Most Affordable States – Surprisingly, Florida Isn’t One of Them
As Americans approach retirement, their anxiety about the future intensifies. Economic challenges, rising healthcare costs, and high living expenses are creating a cloud of uncertainty over the choice of retirement destinations. A recent study, however, reveals the Mountain State region as a prime spot for those seeking affordable retirement options.
Planning to Retire? Check Out The Most Affordable States – Surprisingly, Florida Isn’t One of Them
Social Security serves as a critical lifeline for countless seniors, providing essential income support in their retirement years. In the current economic environment, Social Security’s inflation-adjusted benefits offer a safeguard against the worst inflation seen in four decades. Rising interest rates have disrupted many retirement portfolios, causing bond fund values to plummet. Social Security can act as a ballast for a typical stock-bond retirement portfolio. By implementing specific strategies, retirees can maximize their Social Security benefits and secure a stable financial future.
Maximize Your Social Security Benefits with These 14 Smart Strategies
The 9 States Taxing Social Security in 2024 and the 3 That Just Stopped
While many bask in the belief that their golden years will be tax-friendly, residents in nine specific states are facing a reality check as their Social Security benefits come under the taxman’s purview. Conversely, a wave of relief is set to wash over three states, marking an end to their era of taxing these benefits. This shift paints a complex portrait of retirement planning across the U.S., underscoring the importance of staying informed of the ever changing tax laws.
Are you residing in one of these states? It’s time to uncover the impact of these tax changes on your retirement strategy and possibly reconsider your locale choice for those serene post-work years. Here are the states taxing social security benefits.
The States Taxing Social Security in 2024 and the 3 That Just Stopped
Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible
Dreaming of retiring to a sun-drenched beach or a quaint village? Many Americans envision spending their golden years abroad, savoring the delights of new cultures and landscapes. However, an essential part of this dream hinges on the financial stability provided by Social Security benefits. Before packing your bags and bidding farewell, it’s crucial to know that not all countries play by the same rules when it comes to collecting these benefits overseas. Here are the nine countries where your dream of retiring abroad could hit a snag, as Social Security benefits don’t cross every border. Avoid living in these countries so your retirement plans don’t get lost in translation.
Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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