To: Kenneth E. Phillipps who wrote (559025 ) 4/2/2004 9:40:34 AM From: Bald Eagle Respond to of 769670 Jobs soar in MarchPayrolls increase by more than twice the expected number. The economy created 308,000 jobs in March, well ahead of economists’ expectations, sending signals that the labor market may finally be catching up with the rest of the economy. Stocks are jumping early on, fueled by labor market optimism. Stock index futures moved sharply higher immediately after the number was released.Fast and easy. E-file your taxes at H&R Block. The increase in nonfarm payrolls was the highest in four years, helped by strong hiring in the construction sector and striking grocery workers in California returning to work. January and February payroll increases were also revised higher. With those revisions, the economy created 517,000 jobs in the first quarter. But the unemployment rate edged up to 5.7%. Economists surveyed by CNBC and Dow Jones expected nonfarm payrolls to rise by 120,000 last month, with the unemployment rate holding steady at 5.6%. The job growth is just the kind of number the market has been waiting for, and a lot of money on the sidelines should come into equities, Jack Bouroudjian, president of STS Financial Services, told CNBC’s “Squawk Box.” “Watch out, I have a feeling this is setting the tone for the whole quarter,” Bouroudjian said. But investors shouldn’t be too giddy, said Mark Zandi, chief economist at Economy.com. There are still a lot of pressures on the job market, and while hiring should pick up, it’s unlikely the job market will come “roaring back,” Zandi told “Squawk Box.” In addition, the stock market may be concerned about the Federal Reserve hiking interest rates is the labor numbers stay strong, he said. The labor market has been the squeaky wheel in the economy for some time now. Market watchers have been hoping that job creation would eventually follow the strong growth in gross domestic product, but a surge in productivity has kept the need for new workers at bay.