Jobs by JobLookup
jobs by JobLookup job search

U.S. job growth totaled 275,000 in February but unemployment rate rises to 3.9%

0

 


U.S. economy adds 275,000 jobs in February, above 198,000 forecast

U.S. unemployment rate rises to 3.9% in February from 3.7%

U.S. hourly wages rise 0.1% in February

The increase in hourly wages in the past year slows to 4.3%

U.S. job gains in January lowered to 290,000 from 353,000

U.S. job gains in December were revised down to 229,000 from 333,000


 Despite expectations of an economic slowdown, the labor market seems unaffected. Employers reported adding 275,000 jobs in February, surpassing predictions once again following January's unexpected increase. Although the unemployment rate rose to 3.9 percent, the steady job growth indicates that even four years after the pandemic began, America's job market remains robust.


Despite anticipation for a slowdown and loosening job market conditions, the reality contradicts these predictions. Hiring has not just been modest as anticipated six months ago, with employment growth spread across various industries. Some pandemic-affected sectors have lost jobs, but the expected decline in industries like construction has not materialized. This is partially due to factors such as rising wages, appealing benefits, and flexible work schedules attracting workers back into the workforce, along with increased immigration contributing to the labor supply.


However, the employment landscape appears less optimistic for everyone. Employee confidence, as observed on Glassdoor, has declined notably, especially in white-collar industries where layoffs in tech and media have been prominent. On the contrary, industries like healthcare, construction, and manufacturing requiring in-person work have maintained a positive outlook. The labor market seems to be running on two different tracks, favoring skilled workers in some industries while presenting challenges for others seeking new job opportunities.


Despite concerns in specific sectors, recent months have shown positive economic data, leading to upward revisions in GDP forecasts and lower unemployment expectations by analysts. This trend persists despite easing inflation, with the Federal Reserve hinting at possible interest rate cuts later this year, further boosting growth prospects. The optimism among economists surveyed by the National Association for Business Economics is partly attributed to reduced fears of government shutdowns and budget cuts, with no immediate signs of an impending economic downturn.


Mervin Jebaraj, director of the Center for Business and Economic Research at the University of Arkansas, who helped compile the survey responses, remains optimistic about the ongoing recovery. He believes that the current momentum, driven by significant government spending, is self-sustaining and likely to continue.  

The US added 275,000 nonfarm jobs in February for a total of 157.8 million, but the number of temporary help services jobs fell, the US Bureau of Labor Statistics reported today.

Temp jobs fell by 15,400 in February from January for a total of approximately 2.75 million. The temp penetration rate — temp jobs as a percent of total nonfarm employment — fell to 1.74% in February from 1.75% in January.

“Demand for temporary help services has appeared uncharacteristically soft in the first two months of this year, with many clients focused on streamlining costs,” Timothy Landhuis, VP of research at SIA, said. “Nevertheless, with most economists projecting solid growth in the US economy this year, we are keeping our eyes open for signs of an eventual uptick in demand for temporary staffing.”

Nonfarm employment’s gain was above expectations; however, January’s monthly gain was revised down by 124,000. Still, the labor market remains strong from a historical perspective.

The BLS reported the US gained an average of 230,000 jobs per month over the prior 12 months. Job gains in February occurred in healthcare, government in food services, and drinking places.

Healthcare services saw an increase of 67,000. That’s above the industry’s average monthly gain of 58,000 over the past 12 months.

The US unemployment rate rose to 3.9% in February from 3.7% in January. The college-level unemployment rate also rose to 2.2% from 2.1%.

Average hourly earnings for all employees on private payrolls rose by five cents to $34.57. That’s below January’s increase of 18 cents.


Post a Comment

Previous Post Next Post