Although layoffs have increased in recent weeks, last week's surge in jobless claims was exaggerated by janitors and other hourly workers filing for claims during the spring break in New York City. The economy will be hard-pressed to provide the jobs necessary to keep up with the labor force growth expected in the period ahead. Any spreading of layoffs would also push the jobless rate higher. Comments Look for a relatively modest gain in jobs following the loss registered in March. Expect a further reduction in factory jobs but gains in mining, construction, trade, services and government.
Comments Anticipate a more restrained rise in wages and salaries compared with recent gains.
The slowdown in the job market will probably temper compensation gains somewhat during coming months. The information and data provided in this analysis are derived from sources that we deem to be reliable and accurate. Any opinions expressed are strictly the opinion of Bank of America Capital Management, Inc. and are subject to change without notice. Banc of America Capital Management provides access to extensive investment expertise, which is available within its own organization, as well as through strategic affiliations. Banc of America Capital Management, Inc. is a registered investment advisory firm that is a subsidiary of Bank of America, and a key organization within Banc of America Capital Management.