Payrolls Plunge To 88K, Biggest Miss Since December 2009, Participation Rate At New 30 Year Low

Tyler Durden's picture

So much for "open-ended QE driven recovery". Moments ago the March Non-farm payroll hit and it was a doozy, printing at 88K, below the lowest forecast of 100K, well below the expected number of 190K, and a tragedy compared to the February revised print of 268K (was 236K). This was the biggest miss to expectations since December 2009 and the worst print since June 2012. The unemployment rate declined to 7.6%, but this was due entirely to the collapse in the labor force participation rate, which declined by 20 bps to 63.3%, a new 30 year low.

And now the time to come up with excuses is here.



and its not just the US - Canada's employment collapsed the most since Jan 09...


From the report:

Total nonfarm payroll employment
edged up in March (+88,000). Over the prior 12 months, employment growth
had averaged 169,000 per month. In March, employment increased in
professional and business services and in health care, while retail
trade employment declined. (See table B-1.)

Professional and
business services added 51,000 jobs in March. Over the past 12 months,
employment in this industry has grown by 533,000. Within professional
and business services, accounting and bookkeeping services added 11,000
jobs over the month, and employment continued to trend up in temporary
help services and in several other component industries.

growth in health care continued in March, with a gain of 23,000, similar
to the prior 12-month average. Within health care, employment increased
by 15,000 in ambulatory health care services, such as home health care,
and by 8,000 in hospitals.

Construction employment continued to
trend up in March (+18,000). Job growth in this industry picked up this
past fall; since September, the industry has added 169,000 jobs. In
March, employment continued to expand among specialty trade contractors 
(+23,000). Employment in specialty trade contractors has increased by
128,000 since September, with the gain about equally split between the
residential and nonresidential components.

Within leisure and
hospitality, employment in food services and drinking places continued
to trend up in March (+13,000). Over the past year, the industry added
262,000 jobs.

In March, retail trade employment declined by
24,000. The industry had added an average of 32,000 jobs per month over
the prior 6 months. In March, job declines occurred in clothing and
clothing accessories stores (-15,000), building material and garden
supply stores (-10,000), and electronics and appliance stores (-6,000).

government, U.S. Postal Service employment fell by 12,000 in March.
Employment in other major industries, including mining, manufacturing,
wholesale trade, transportation and warehousing, information, financial
activities, state government, and local government, showed little change
over the month.

The average workweek for all employees on
private nonfarm payrolls increased by 0.1 hour to 34.6 hours. The
manufacturing workweek decreased by 0.1 hour to 40.8 hours, and factory
overtime rose by 0.1 hour to 3.4 hours. The average workweek for
production and nonsupervisory employees on private nonfarm payrolls was
unchanged at 33.8 hours. (See tables B-2 and B-7.)

In March,
average hourly earnings for all employees on private nonfarm payrolls,
at $23.82, changed little (+1 cent). Over the year, average hourly
earnings have risen by 42 cents, or 1.8 percent. Average hourly earnings
of private-sector production and nonsupervisory employees, at $20.03,
changed little (-1 cent) in March. (See tables B-3 and B-8.)

change in total nonfarm payroll employment for January was revised from
+119,000 to +148,000, and the change for February was revised from
+236,000 to +268,000.

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Cocomaan's picture

Labor force participation rate, bro!

goldinpenguin's picture

thats a really punk number thats for sure, I mean the lowest labor participation rate in 30 years!

GeezerGeek's picture

Mr. 2for22 is really giving Jimmy Carter a run for the bottom of the list.

eclectic syncretist's picture

That's almost 1,000 jobs for every $1,000,000,000 the Fed printed last month.  In other words, it's costing taxpayers $1,000,000 for every new job created. 


papaswamp's picture

Ah but just think...those jobs are going to those with less than HS diploma...huge spike.

sharky2003's picture

I just have to say something is VERY wrong when you find yourself cheering upon seeing stocks plunge and gold/silver spike. It really shouldn't be that way, but I win today. F U Bernanke!!!

Cursive's picture


This is what grifters/rent seekers do.  They insert themselves where they are not needed to earn pay that is not necessary.  The grifter makes coin only by creating arbitrage opportunities.  It's not real economic activity, it's actually harmful to real economic activity.  When we finally outlaw the grifters/rent seekers, we won't have to pit one financial interest or financial market against another.

Ricky Bobby's picture

The problem is the biggest rent seekers are the local, county, state, and US governments.

pndr4495's picture

Great moniker for what you posted.

Wile-E-Coyote's picture

Moar QE needed print $150 bn a month now.

TeamDepends's picture

Commence ad hominem Krugman attacks in 3 2 1...

Bearwagon's picture

There you go: FUCK YOU KRUGMAN!

PartysOver's picture

Why participate when everything is free from the goverment?



dobermangang's picture

And now they have the blueprint on how to steal your bank deposits.  Go Galt.  Starve the beast.

Urban Redneck's picture

I have a farm in Brazil, and if I moved from Switzerland to Brazil to farm something other than dirt or trees- I would wind up paying over 93% <<NINETY THREE PERCENT>> of my "profit" to the governments of the US and Brazil, because there is no double taxation treaty between the the US & Brazil.  The measly sub 7% take home would barely cover property taxes on land and equipment, much less actaully enjoying the fruits of my labor while paying the 40% ICMS (VAT) on iCrap or gasoline.

Coming back to the US, joining the free shit army, and watching it all burn down actually would be more enjoyable than working my ass off to pay for the 37% who are just too "discouraged" to get off their lazy asses.  

Although I could just stay here in Switzerland and lease my land to a Monsanto McFarmer who could pay big bucks to byzantine maze of corporate entities which could cap my tax rate at 7% and would allow the McFarmer to produce McFood to export to the McFatties and poison them into extinction that much faster, thereby driving the labor force participation rate back up (at the expense of never being able to use that farm to produce real food for myself).

Perverse incentives all around.  Right now I have other options, but who's to say what options will remain if the ECB fucks up and nukes the European financial system that I rely on for trade finance?  

Zero_Sum's picture

Watching CNBC, Austin Goolsby (sp?) tried to jump in and blame this on sequester; even Leisman had to disagree with him. Funny.


GrinandBearit's picture

The CNBC morons like to think that they're relevant... they're not.

Oldwood's picture

The numbers are only relavent to those who don't have a job. Who cares about them, right. Just print enough money to keep their mouths shut and by the time this crate hits the ground and all of the shit flows out, it will be far too late to fix anything

sangell's picture

And the segment closed with Liesman praising government spending and Santelli calling him a communist.

kridkrid's picture

When I see Austin Goolsby speak I find myself trying to figure out if he's an actor (i.e. knows that he's lying, but just playing a part) or if his mind is mush and as such, is mostly controlled.  There's a fine line there and it could be both, but he's interesting to watch, none the less.  He kind of scares me.

Oldwood's picture

Two choices. they are either evil and deliberately pushing an agenda of destruction. The other is an education and belief in a course of action and no other. No consideration of alternate approaches. No concept of possibly being deadly wrong. Failure only means they have lacked the commitment to the agenda and need only more, more , more. This is the same thing that kills people in their own lives. A commitment to a bad idea and no backing off. The difference is that those individuals tracking on a self destructive path generally only destroy themselves. These assholes, who are so self absorbed in their elitist mentality, are driving ALL of us off the cliff. In a free society we are free to self destruct but in a collectivist society we are free to be destroyed by a realtive few.

caimen garou's picture

wow! who would of known? I mean with all the swell headed idiots on msm screaming recovery!

TeamDepends's picture

Would HAVE known.  Sorry, but this one drives us crazy.

fonzannoon's picture

The sequester the sequester!!!!!!!

GeezerGeek's picture

Is it true that the White House is blaming Obama's poor hoop-shooting on the sequester?

Taffy Lewis's picture

No, the White House press corps is still in shock from the 2-for-22 because they realize that Obongo really is gay, Reggie Love is his bum buddy, and the Wookie really is a single mother (sorry, OT, but I couldn't resist).

augmister's picture

Michelle is running around telling everyone she is a single mom.... So Barry isn't even hitting the rim on her basket!

mdtrader's picture

EUR/USD rushes above 1.30, because everything is fixed in Europe and a weaker US economy is bullish for Europe lol.

LawsofPhysics's picture

The western world has been selling their own people out for years, nothing new to see here, move along.  Greed is good and print MOAR!!!

Temporalist's picture

But, but on CNBS they said it would be 150k and even Ghoulsbee said 149k and he was bearish.

GeezerGeek's picture

The upward revisions to January and February came to 60K+. Add that to the 88K and you end up at 149K. Right on target.

DavidJ's picture

Bullish! Bernanke willsimply  increase QE.  Dow to 36,000!

GeezerGeek's picture

Bullish! Bernanke will simply increase QE. Loaf of bread to $14.99.

Aknownymouse's picture

Seems to me that QE is NOT working. Time to reevaluate. Is it really worth the costs???

CrimsonAvenger's picture

You don't think the real reason for QE has anything to do with employment, do you?

e-recep's picture

our central banker masters have spoken : there is no plan b. the only plan is "plan heidelberg".

DormRoom's picture

QE was predicated on Okun's Law. Given the exceptional stimulus and stagnant job growth what is their justification other than to enrich the1%?

Aknownymouse's picture

Time for both repubs and dems to challenge the fed. QE will NOT be popular during the next FED chief confirmation hearings. Not good for markets.

Roandavid's picture

Where's that moron Krugman?

diogeneslaertius's picture

high-capacity assault analysis

definitely with white al-qaeda

Dollar Bill Hiccup's picture

My dog ate my homework.

The sun was in my eyes and I tripped over a rock.

The check is in the mail, really.

Temporalist's picture

"I ran out of gas, I had a flat tire, I didn't have enough money for cab fare..."

HD's picture

Someone slap me.  I'm starting to believe fundamentals matter again...


e-recep's picture

just check out the gold charts, you'll be OK in no time.

Turdy Brown's picture

CNN trying HARD to put a good spin on things.  Making me puke.  Talking about the under employment # going down?  Unbelievable

Shizzmoney's picture

People on my twitter stream now blaming the cold, snowy March weather #smh

On the bright side I guess, if you are a trader whose trades are based off of QE news and polciies, you will get carpel tunnell from the amount of fist pumping you did when the 88K news came out!

GeezerGeek's picture

The cold, snowy March weather was the result of Bush not fighting global warming. Therefore, the poor employment data can only be attributed to Bush.