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For workers, there was the better-than-expected news that the nation's economy produced 211,000 new jobs in March, well above the 180,000 or so that economists were expecting. This pushed down the national unemployment rate from 4.8 percent in February to 4.7 percent last month, marking the lowest rate since the summer of 2001.
For the first quarter, the economy created 197,000 new jobs a month on average, up from 179,000 in the fourth quarter of 2005.
The jobs report had good news for employers, too. Despite the expanding payrolls, average wages have not been climbing dramatically.
Average hourly earnings for nonsupervisory workers increased by only 3 cents in March to $16.49. This was lower than the 5-cent increase in January and the 6-cent jump in February. Over the past 12 months, average hourly earnings have risen 3.4 percent. While anything over 3 percent is somewhat worrisome, that was still below the 3.6 percent annual jump in consumer inflation.
This means investors are also going to be happy. That's because rising wage pressures bring with them inflation fears.
The fact that wages are still reasonably under control means that inflation may not be as big a threat as some fear. And this, in turn, means the Federal Reserve may not have to raise rates too many more times in its effort to maintain price stability in the economy.
Economists are probably breathing a sigh of relief, too. With recent signs of a slowdown in housing, economists have been worried about how consumers would be able to sustain the loss of that key source of wealth.
But with job creation improving, consumers may not have to worry after all. That's because their incomes are still growing.
