US adds 162,000 jobs

April 3, 2010 at 12:00a.m.

Associated Press

WASHINGTON

The nation’s economy posted its largest job gain in three years in March, while the unemployment rate remained at 9.7 percent for the third straight month.

The increase in payrolls is the latest sign that the economic recovery is gaining momentum and healing in the job market is beginning. Still, the healing is likely to be slow, and most economists don’t expect new hiring to be fast enough this year to rapidly reduce the unemployment rate.

The Labor Department said employers added 162,000 jobs in March, the most since the recession began but below analysts’ expectations of 190,000. The total includes 48,000 temporary workers hired for the U.S. Census, also fewer than many economists forecast.

Private 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.”

Still, there are 15 million Americans out of work, roughly double the total before the recession began in December 2007. More Americans entered the work force last month, which prevented the increase in jobs from reducing the unemployment rate.

The economy began recovering in the middle of last year, but is only now showing modest job gains.

“It is still disappointing that it took roughly nine months before we started to see any meaningful rebound” in jobs, Paul Ashworth, senior U.S. economist at Capital Economics, wrote in a note to clients.

The stock market was closed for Good Friday, but stock futures edged up in an abbreviated session of electronic trading. Dow Jones industrial average futures rose about 0.3 percent.

President Barack Obama told workers at a high-tech battery plant in Charlotte, N.C., that his aggressive — if unpopular — policies helped add jobs.

“We are beginning to turn the corner,” he said.

But he also sounded a cautionary note. “We shouldn’t underestimate the difficulties we face,” he said. “We’re still going through a hard time.”

Manufacturers added 17,000 jobs, the third-straight month of gains. Temporary help services added 40,000, while health care added 37,000. Leisure and hospitality added 22,000.