Weak job growth in February
The U.S. economy added just 20,000 jobs in February, compared to 304,000 new jobs in January, but the unemployment rate declined to 3.8% from 4%, the U.S. Bureau of Labor Statistics reported on Friday morning.
The latest report fell short of economists expectations of as many as 180,000 new jobs being added. February was the poorest job creation month since September 2017.
Employment in construction declined by 31,000 in February, offsetting an increase of 53,000 in January. Over the past year, construction has added 223,000 jobs.
Wholesale trade employment by increased by 11,000 with the industry adding 95,000 jobs over the year, primarily among durable goods wholesalers.
Manufacturing employment changed little in February with 4,000 jobs added, after increasing by an average of 22,000 per month over the prior 12 months.
Employment in other major industries, including mining, retail trade, transportation and warehousing, information, financial activities, and government, showed little or no change over the month, the Bureau reported.
The labor force participation rate held at 63.2% in February and has changed little over the year.
The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.4 hours in February. In manufacturing, the average workweek declined 0.1 hour to 40.7 hours, while overtime was unchanged at 3.5 hours.
The average workweek for production and nonsupervisory employees on private nonfarm payrolls fell by 0.2 hour to 33.6 hours.
Average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents to $27.66, following a 2-cent gain in January. Over the year, average hourly earnings have increased by 3.4%. ‘
For private-sector production and nonsupervisory employees, hourly earnings increased by 8 cents to $23.18 in February.
Commenting on the latest report, National Retail Federation Chief Economist Jack Kleinhenz said, “February’s employment numbers are another surprise, but I really doubt these figures are indicative of the strength of the economy given the overall trends.”
"There are a lot of moving parts in play and a lot of noise masking the signal. February saw unfavorable winter weather, and there was also carryover from the adverse effects of the government shutdown and sorting out of the recent volatility in the financial markets that may be evident in today’s numbers," Kleinhenz explained. "Given the outsized strength of January employment, it’s best to look at the longer-term averages for a better understanding of the trends, both for the economy overall and for retail.”
The latest report fell short of economists expectations of as many as 180,000 new jobs being added. February was the poorest job creation month since September 2017.
Employment in construction declined by 31,000 in February, offsetting an increase of 53,000 in January. Over the past year, construction has added 223,000 jobs.
Wholesale trade employment by increased by 11,000 with the industry adding 95,000 jobs over the year, primarily among durable goods wholesalers.
Manufacturing employment changed little in February with 4,000 jobs added, after increasing by an average of 22,000 per month over the prior 12 months.
Employment in other major industries, including mining, retail trade, transportation and warehousing, information, financial activities, and government, showed little or no change over the month, the Bureau reported.
The labor force participation rate held at 63.2% in February and has changed little over the year.
The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.4 hours in February. In manufacturing, the average workweek declined 0.1 hour to 40.7 hours, while overtime was unchanged at 3.5 hours.
The average workweek for production and nonsupervisory employees on private nonfarm payrolls fell by 0.2 hour to 33.6 hours.
Average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents to $27.66, following a 2-cent gain in January. Over the year, average hourly earnings have increased by 3.4%. ‘
For private-sector production and nonsupervisory employees, hourly earnings increased by 8 cents to $23.18 in February.
Commenting on the latest report, National Retail Federation Chief Economist Jack Kleinhenz said, “February’s employment numbers are another surprise, but I really doubt these figures are indicative of the strength of the economy given the overall trends.”
"There are a lot of moving parts in play and a lot of noise masking the signal. February saw unfavorable winter weather, and there was also carryover from the adverse effects of the government shutdown and sorting out of the recent volatility in the financial markets that may be evident in today’s numbers," Kleinhenz explained. "Given the outsized strength of January employment, it’s best to look at the longer-term averages for a better understanding of the trends, both for the economy overall and for retail.”