Economy Slips, Percentage of Working Americans Lowest Since 1979

Photo Credit: Tax Credits

The nation’s economy added 88,000 jobs in March, a figure far below expectations that is likely to trigger new doubts about the strength of the economy.

While the unemployment rate fell to 7.6 percent, that reflected 496,000 workers leaving the workforce, not a strengthening labor market. The 63.3 percent labor participation rate is the lowest since 1979.

Analysts had expected job gains near 200,000 in March. The report released Friday by the Bureau of Labor Statistics is likely to renew a debate in Washington about the direction of the economy. Republicans seized on the numbers to criticize President Obama, with House Majority Leader Eric Cantor (Va.) quoting a former Obama economic adviser to describe the figures as a “punch to the gut.”

“Today’s jobs report is disappointing,” Cantor said in a statement. “Our economy is not creating enough jobs, and too many working men and women are still in the unemployment line.

“For months, we’ve heard plenty of excuses from the White House and Congressional Democrats for why unemployment remains high. It’s time to stop making excuses and start working together on common sense solutions to address our lingering unemployment problem, and the stagnant economy,” Cantor said.

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