After the latest job report was announced William Dudley, New York Federal Reserve President, released a statement saying that the BLS report showed weaker numbers than expected as the unemployment stayed the same at 5.5%. (http://www.bls.gov/news.release/empsit.nr0.htm) Mr. Dudley believes that one of the major factors that affected the weather include a “harsher” than usual winter across the eastern portion of the U.S and that these numbers may be temporary.
However, you can’t place all the blame on the weather. Yes it may have slowed down growth to an extent but one has to consider other factors that affect the U.S and global markets. Such factors include the strength of the dollar, the ongoing economic fiasco in Greece, and rising oil prices.
Record dropping oil prices acted as a tax break to many across the U.S. Those effects were brief, have weaned away, and have began to cause more harm than good as prices have began to rebound and rise again. Since the supply for oil is greater than the demand oil companies have begun to lay off workers. Next, the ongoing fiasco in Greece caused the dollar to appreciate vs. the euro. Importing goods from the U.S has become more expensive to international countries. This has caused economic growth to slow which in turn has caused little to no help to the employment rate.
What does this all mean? March’s unemployment rate was affected by more than the weather. These factors may continue to affect future job reports unless they are addressed. William Dudley and those at the Federal Reserve may need to reconsider an increase in the Federal Reserve benchmark rate to later in the year when the job reports finally meet their expectations. That is unless they want to attribute slower economic growth in Q3 to a scorching summer…