In a blow to hopes that the economy was finally gaining momentum, the government reported on Friday that employers added jobs last month at the slowest pace in three years, although some experts cautioned that wintry weather in many parts of the country may have skewed the data.
In December, employers added just 74,000 jobs, the Labor Department said, well below the 200,000 gain many economists had been looking for. The latest figures were a reversal from healthier monthly payroll gains in the fall that had convinced many economists ”“ as well as policy makers at the Federal Reserve ”“ that the labor market was on a more solid footing.
The unemployment rate did fall to 6.7 percent from 7 percent in November, the lowest since November 2008. But that was largely because of people dropping out of the work force rather than finding jobs.
The weather? My first thought was that businesses would be more concerned with the Affordable Care Act rather than that it was cold and snowy in the winter.