How brisk is hiring? Employers add 313K jobs
A hot labor market showed no sign of cooling as U.S. employers added a blockbuster 313,000 jobs in February.
The unemployment rate was unchanged at a 17-year low of 4.1%, the Labor Department said Friday. Among the jobs report’s findings:
❚ Wage growth slows: Average hourly earnings rose 4 cents to $26.75, slowing the annual increase to 2.6% from January’s 2.9%. The drop suggests that January’s big increase was an anomaly. It was caused by a sharp decline in average weekly hours as a result of harsh weather and a nasty flu ❚ season. The typical workweek edged back up last month to 34.5 hours.
The jump in January was the largest in nearly nine years. It appeared to signal that the low jobless rate and growing competition among employers for fewer workers were finally leading to stronger wage growth.
What seemed like good news triggered a massive stock market sell-off ❚ as investors feared it would prompt faster interest rate hikes by the Federal Reserve to head off excessive inflation. Higher rates for bonds make stocks less attractive. February’s pullback in wages could ease investor worries and boost markets.
❚ More people working, job hunting: One reason pay increases slowed in February is that 806,000 Americans joined the labor force. Many were discouraged workers on the sidelines who were drawn back in by a robust labor market.
That trend is healthy for the economy, but it limits raises because it provides employers a bigger pool of job candidates.
Industries leading the way: Construction led the payroll gains, with a big 61,000 number, signaling that warm weather was a key factor bolstering employment.
Even retailers, which have shed jobs as more people shop online, added 50,000 — another sign that warm temperatures may have lured shoppers to the malls.
African-American unemployment plunges: After reaching a recordlow 6.8% in December, the unemployment rate for African Americans spiked to 7.7% in January. The rate fell sharply in February to 6.9%, indicating that January’s big increase was a blip.
It’s hard to ask for a better jobs report. The 313,000 jobs added were the most since July 2016. If that wasn’t enough, payroll gains for December and January were revised up by 54,000. And about 800,000 people, including many on the sidelines, were encouraged to jump into the hot labor market.
Sure, wage growth slowed, but it still rose 2.6% annually, which is up from the tepid 2.5% pace of the past couple of years.