Expectations were high for the February jobs number last month...

...and certainly a 20,000 employment gain substantially disappointed. There are reasons not to be too alarmed, however. The unemployment rate slipped back to 3.8 percent, while the labor force participation rate held at 63.2 with a modest decline in the civilian labor force. Most encouraging was the 11 cent or 3.4 percent year-over-year earnings growth. Note that productivity grew at 1.9 percent annualized in the 4th quarter, closing out a particularly strong nine-month period. If that holds, then a labor market that yields strong earnings growth but smaller job gains at this stage of the recovery is a bargain most observers would take.

Here is a brief summary of the major economic indicators since the last jobs numbers:

• The Producer Price Index for final demand increased 0.1 percent in February;
• The Consumer Price Index increased 0.2 percent in February;
• Real average hourly earnings increased 3 cents from January to February;
• Orders for durable goods decreased 1.6 percent in February;
• New home sales increased 4.9 percent in February;
• The Price Index of U.S. imports increased 0.6 percent in February;
• ISM Non-Manufacturing Index decreased to 56.1 percent in March;
• ISM Manufacturing increased to 55.3 percent in March;
• Consumer Confidence Index decreased from 131.4 to 124.1 in March;

ADP reported private sector employment increased by 129,000 jobs in March.