Although U.S. companies cut investment as profits fell and the country is likely to show disappointing growth rate, gaining new jobs is still at good pace.
The U.S. keeps adding 200,000 plus new jobs every month is now the gate keeper from another recession. The country has an average of 213,000 new jobs in the past four years.
The unemployment rate is at eight-year low stationed at 4.9%. On Friday April 1, the U.S. government will issue March unemployment report which is likely to stay at the same rate.
According many analysts, the stable growth in U.S. jobs is now the protector of the economy as consumers buying enough goods and services to encourage companies to hire new people.
The question is how long will companies continue to hire new employees if profits and investment remain weak?
Several important industries have taking a big hit. Energy producers have been suffered from low oil price and other companies who depend on exports got hit from the strong dollar.
Overall, Americans spend more on eating outside and travel, fulling an increase in hiring at hotels and restaurant. Usually when leisure activity grows, it’s signals people feel more secure about their job status and the overall economy.
Several FED officials expressed positivity about the economy on last Tuesday meeting, might be a hint that another rate hike will take place on April.