Everyday Economics: Inflation problem harder to ignore

(The Center Square) – Last week’s jobs report looked reassuring at first glance. Payrolls rose by 178,000 in March and the unemployment rate edged down to 4.3%. But the details were softer than the headline. January and February payrolls were revised down by a net 7,000, the labor force shrank by 396,000, participation slipped to 61.9%, and the employment-to-population ratio fell to 59.2%. The number of marginally attached workers jumped to 1.94 million, including 510,000 discouraged workers. Wage growth also cooled, with average hourly earnings up just 0.2% on the month and 3.5% from a year earlier. Annual wage growth is down from 3.8% in February. Meanwhile, the three-month average payroll growth was only 68,000. That is not a labor market that has reaccelerated. It is a labor market that still looks stalled. That matters because this week’s focus shifts from jobs to inflation. The key releases are the February Personal Income and Outlays report, which includes the Fe