USA economy added 313000 jobs in February

  • USA economy added 313000 jobs in February

USA economy added 313000 jobs in February

Manufacturing added 31,000 jobs, with 4,000 new positions in primary metals manufacturing added even before the administration imposed new steel and aluminium tariffs to benefit the industry. The Arnold & Porter chairman said the move was not a layoff or a "prelude to a layoff". The Dow Jones industrial average gained 440 points to close at 25335. Last month, a jump in hourly pay from the same report had sparked a global selloff. The 2.9% pace of growth was revised down to 2.8%, showing that wages picked up but not as quickly as initially thought.

The U.S. economy added 313,000 jobs in February and the unemployment rate remained historically low at 4.1 percent - sublime news that all but ensures as many as four benchmark interest rate hikes in 2018, according to monthly Labor Department figures released on Friday.

Along with the increase in payrolls for February, job gains in January and December were bigger than initially estimated.

The Labor Department says wage gains, meanwhile, fell from the previous month to 2.6 percent year-over-year growth.

- A "Goldilocks" report for markets?

Hiring was solid across a wide range of industries in February, including higher-paying sectors such as construction, which added 61,000 jobs, the most since 2007, before the Great Recession began. Government employment was up by 26,000.

But there also were signs the hunger for increasingly scarce workers was causing companies to dig deeper into the labour pool.

The number of people marginally attached to the workforce (that is, discouraged workers now not looking for work because they believe no jobs are available for them) has fallen by almost 150,000 from this same point a year ago, and the number of employed black Americans is hitting record highs.

The unemployment rate for those who have served in the armed forces anytime since September 2001 dropped to 3.3 percent, matching a record low from December. Chris Low of FTN Financial said in a client note.

The other side of this debate might be called the "let it run" camp, who argue that a lot of good things might happen if the Fed and other policymakers move patiently and see whether some of the damage done by the 2008 recession might fix itself in a sufficiently hot economy. The results reportedly outpaced the expectations of economists, who had anticipated that about 200,000 jobs would be added in the month.

The picture drawn by Friday's jobs report is a mixed one for the Fed, which seeks to raise short-term interest rates at just the right pace: enough to forestall inflation but not so fast as to slow economic growth.

Why we would want to risk growth for an outcome that is uncertain at best, and job-killing at worst?

But it offered "a false picture of a "Goldilocks" economy" for financial markets, she said in a research note. Worker compensation also expanded, but not in a way that suggests problematic inflation.