By Jeffry Bartash
WASHINGTON (MarketWatch) - The economy generated just 88,000 jobs in March - the smallest gain in 10 months - and more people dropped out of the labor force, adding to a fresh pile of evidence that the pace of hiring in the United States has slowed. The unemployment rate fell a tick to 7.6% from 7.7%, the lowest rate since December 2007, but the decline stemmed from fewer Americans looking for work, according to Labor Department data. The jobs report fell well short of Wall Street forecasts. Economists polled by MarketWatch expected the number of new jobs to increase by 190,000 last month and for the unemployment rate to remain unchanged at 7.7%. Employment gains for February and January, however, were both revised higher and people who do hold jobs put in more hours, Labor said Friday. The number of new jobs created in February was revised to 268,000 from 236,000, while January's figure was revised up to 148,000 from 119,000. The biggest increase in hiring in March occurred in professional services (51,000) and health care (23,000). Retailers and government trimmed employment. Average hourly wages edged up 1 cent to $23.82, reducing the 12-month increase to 1.8%. The average workweek rose 0.1 hour to 34.6, a sign that workers are putting in more overtime. The participation rate, a measure of health in the labor market, slid again to 63.3%, marking the lowest level since 1979.
