US nonfarm payroll provides a sigh of relief and supports Fed's patience with Investing.com

Investing.com – March's US jobs report has appeased recent signs of weakness in the labor market, while not sending a strong enough signal to warn markets to change their jobs. the current "patient" of the Federal Reserve. "Monetary policy approach.

(NFP) increased 196,000 in March, exceeding expectations set at 175,000, as planned, at 3.8%, as expected.

The increase in job creation occurred after an extremely weak reading in February and the payroll processor ADP report released on Wednesday showed that the US economy posted the weakest growth in 18 months in March.

"In addition to the low rate of activity, the employment report supports the economy, the markets and the current direction of the Fed," commented the chief economist of Allianz, Mohamed El-Erian, on the March figures.

for its part, it grew by 3.2% on an annualized basis, down 3.4% from the previous month. Although it remains above the 3% level, which is generally seen as exerting upward pressure on inflation, the slowdown reinforces the Fed's decision in March to maintain its policy and no longer rate increases in 2019.

William Spriggs, professor of economics at Howard University and chief economist of the American Federation of Labor and Congress of Industrial Organizations, shares El-Erian's concern about the decline in the labor force activity rate from 63.2% to 63.0%. of the employment report.

He considers that the unemployment rate has remained stable due to a decrease in participation and a slight decline in the employment / population ration.

For Spriggs, the data "show a slowing labor market. Obviously, the Federal Reserve was right. "

Joseph Brusuelas, chief economist at the RSM US LLP consulting firm, came to the same conclusion: "The March employment data and the February review are not powerful enough to dislodge the Fed from its current path which is consistent with our model is probably pending until 2020. "