Looking for a new job? Now's probably not a good time: the Labor Department just released its weakest jobs report since June 2012. The unemployment rate did dip to 7.6 percent from 7.7 percent, but only because more people dropped out of the labor force.
Employers hired just 88,000 people in March, well below the 200,000 new jobs that are necessary for the economy to grow.
"The US economy just hit a major speed bump," Marcus Bullus, trading director at MB Capital in London, told Reuters. The weakness appears in part to be due to higher tax rates that went into effect in January, according to Reuters.
“I don’t think we have to be overly worried, but we have to trim our expectations a bit," Northeastern University economist Alan Clayton-Matthews told the Boston Herald.
The weak numbers comes just as news broke that Obama will introduce a budget with cuts to social security and medicare, along with fewer tax increases. The document is the result of a compromise offer that Obama had made to House Speaker John A. Boehner last December, the Washington Post reported. A senior White House official admitted that it's not Obama's "ideal policy."