The economy added just 88,000 non-farm payroll jobs in the month of March, forcing the labor participation rate down and driving the unemployment rate down to 7.6 percent. Reacting to this news, former White House advisor Austan Goolsbee told the hosts of CNBC that the news was a “punch to the gut.” He attempted to blame the cuts on the sequester before another CNBC host corrected him and noted that the payroll tax hike was more likely the reason for the show employment growth.
“We all overshot it,” Goolsbee said. “This is a punch to the gut. This is not a good number, and I think – now you’re going to interestingly start seeing a lot of discussion about maybe the sequester’s a bigger deal than people thought it was.”
Goolsbee’s CNBC colleagues replied that the payroll tax hike forced 24,000 people out of retail employment and is more likely the reason for the slower employment growth rate.
Watch the clip below via CNBC:
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