Jobs report: Hiring slows severely in March

Hiring slowed sharply in March, with the economy adding only 88,000 jobs, the lowest monthly gain since last June.

The unemployment rate slipped to 7.6%, according to a Labor Department report released Friday. But it's not good news: It's because nearly 500,000 people dropped out of the labor market. 

The labor force participation rate, which measures how many people are employed or looking for jobs, fell to 63.3% -- its lowest level since May 1979. 

Economists surveyed by CNNMoney were expecting an increase of 190,000 jobs in March. 

They had expected the unemployment rate to hold steady at 7.7%. But some have also voiced concerns that forced government budget cuts and the uncertainty bred by the policy stalemate between Congress and the president could prompt employers to hold off on adding to payrolls.