The Atlanta Journal-Constitution
U.S. adds 20,000 jobs; jobless rate at 3.8%
Harsh winter, partial federal government shutdown may be behind weaker numbers.
Hiring tumbled in February, with U.S. employers adding just 20,000 jobs, the smallest monthly gain in nearly a year and a half. The slowdown in hiring, though, might have been depressed by harsh winter weather and the partial shutdown of the government.
What it means
Last month’s weak gain came after employers had added a blockbuster 311,000 jobs in January, the most in nearly a year. Over the past three months, job growth has averaged a solid 186,000, enough to lower the unemployment rate over time. And despite the tepid pace of hiring in February, the government’s monthly jobs report Friday included some positive signs: Average hourly pay last month rose 3.4 percent from a year earlier — the sharpest yearover-year increase in a decade. The unemployment rate also fell to 3.8 percent, near the lowest level in five decades, from 4 percent in January. Cold weather afflicted some areas in February. And the 35-day government shutdown that ended in late January likely affected the calculation of job growth.
Why it matters
Still, the hiring pullback comes amid signs that growth is slowing because of a weaker global economy, a trade war between the United States and China and signs of caution among consumers. Those factors have led many economists to forecast weaker growth in the first three months of this year. Most analysts expect businesses to keep hiring and growth to rebound in the April-June quarter.
It will be harder than usual, though, to get a precise read on the economy because many data reports are still delayed by the partial shutdown of the government.
What’s next
The economy is forecast to be slowing to an annual growth rate of just 1 percent in the first three months of this year, down from 2.6 percent in the October-December quarter. Growth reached nearly 3 percent for all of last year, the strongest pace since 2015.