The US economy appears to be zipping along at a solid clip but analysts say it could be a while before the job market comes roaring back.
Economists expect the Labor Department's employment report, due out Friday, to show only a modest pace of job creation and perhaps even a slight uptick in the unemployment rate.
Such predictions come even as many analysts estimate the economy was cruising ahead at a rate of close to 5 per cent growth in the first quarter of this year.
The past few weeks have seen a flood of data suggesting a surprisingly robust pace of growth for the economy, which has only recently emerged from a mild recession.
Nevertheless, US economists in a Reuters survey are bracing for a tepid 41,000 increase in the number of workers on nonfarm payrolls in March following a 66,000 gain in February.
The jobless rate is seen edging higher to 5.6 per cent from February's 5.5 per cent. The encouraging economic signals have included rising consumer confidence, continued strong demand for homes, brisk consumer spending and even some improvement in the battered factory sector.
Economists think the strong data may prompt the Fed to nudge short-term interest rates higher, perhaps starting in June, from their current very low level of 1.75 per cent. Such moves would be aimed at preventing the economy from potentially overheating later in the year.