U.S. adds 162,000 jobs in March

The U.S. economy generated 162,000 new jobs in March — the biggest monthly increase since the recession began in 2007, the U.S. Labour Department said Friday.

It was also the largest monthly job gain since March 2007.

Despite the increase in payrolls, the unemployment rate remained at 9.7 per cent for the third straight month. Analysts had expected non-farm payrolls to rise by 190,000.

The new jobs included about 48,000 temporary workers hired to carry out the U.S. census. 

The monthly labour report contained several nuggets of news that suggested the economic recovery in the U.S. is gradually creating employment.

The average work week rose from 33.9 to 34 hours — a positive sign for the future since employers typically let employees work more hours before hiring new workers.

Private sector hiring critical in recovery

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

"It's just the beginning of a rise in private hiring that will help sustain the recovery," said Stuart Hoffman, chief economist at PNC Financial Services Group. "They're not big numbers, but they're welcome numbers."

Since the U.S. recession began in December 2007, more than eight million Americans have lost their jobs. The jobless rate is expected to remain high well into next year as the recovery slowly builds momentum.

U.S. President Barack Obama cautioned Friday that a full rebound in jobs won't be quick or easy. 

"We are beginning to turn the corner," Obama said in a speech in Charlotte, N.C. "Today's job numbers, while welcome, leave us with a lot more work to do. It will take time to achieve the strong and sustained job growth that we need."

Canada's employment figures for March will be released April 9.  Analysts are expecting that the Canadian economy added 25,000 jobs last month — enough to lower the jobless rate from 8.2 per cent to 8.1 per cent.

"In the coming months, as the Canadian economic recovery gains further traction, we expect the economy to continue adding jobs at a robust pace," said TD Bank economist Millan Mulraine in a commentary.