Let's start with the good news -- in March, there were 180,000 more jobs than in February, according to the employment report, released today by the Bureau of Labor Statistics (BLS). Generally, about 150,000 new jobs are needed each month to keep the economy stable.

Furthermore, the unemployment rate decreased to 4.4%, meaning fewer unemployed than the month before.

However, when you compare March of 2007 to March 2006, you find two disturbing trends.

1. Jobs increased by only 1.4%, which is pretty weak. Even worse, for the last 12 months, year over year job growth has been getting weaker and weaker.
2. Manufacturing jobs have been steadily declining since last October. This means that, in March, there were .8% fewer manufacturing jobs than the year before. Manufacturing jobs are a good predictor of overall economic performance, since they produce big-ticket items than consumers will put off buying when the economy starts to weaken. As the orders decline, manufacturers will hire less workers, and even lay off existing workers to keep costs low.

What does this mean for you? Well, if hiring doesn't start to improve over the next few months, then it is time to prepare for an economic slowdown. The next employment report will be released May 4, so check back then.

How does employment affect the economy?

• A Primer on the Role of Supply in the U.S. Economy
• The Impact of an Aging Labor Force on the U.S. Economy
• How the U.S. Is Losing Its Competitive Edge