Economy in the United States added 311,000 new jobs in February the past, a figure that, although exceeding expectations, is sending the first signs of wear and tear.
The labor market remains remarkably resilient despite high inflation persistence and fears of an economic downturn.
However, the Department of Labor report this Friday shows first failure with 504,000 jobs which were created in January last year.
The data cannot yet be considered a trend; however, it sends the first signal to the Federal Reserve System (FRS) that I carefully waited for the employment report February ahead of their meeting, scheduled for the end of this month.
The Fed is paying particular attention to labor market reports as they are a thermometer of whether its strategy of raising interest rates is working in a cooling economy.
While the February data showed a pullback from January, the 311,000 jobs created are still too many for the Fed, so another rate hike is all but inevitable.
Meanwhile, the unemployment rate also changed during February, with an increase to 3.6%, from 3.4% in January last yeara fact that has persisted at historic lows for nearly half a century.
The unemployment rate beat the expectations of economists polled by Refinitiv, who had expected it to remain at 3.4%; however, the employment data topped the forecast of 205,000 new jobs.
Where jobs have grown the most in the US
Leisure and hospitality employment data continues to be very positive as it was one of the who fought the labor shortage the most and to fill vacancies left during the pandemic.
Other sectors that also performed best in February last year were retail, government and healthcare.
Meanwhile, a piece of information that could also inform Fed policymakers is earnings per hour, which posted a marginal 0.2% gain in February last year, but with 4.6% growth compared to February 20202.
Employment data will be the benchmark for the next Fed meeting, which will consider the behavior of the labor market in its quest to reduce inflation and return it to the target annual level of 2%, without driving the economy into recession.
Source: La Opinion
Alfred Hart is an accomplished journalist known for his expert analysis and commentary on global affairs. He currently works as a writer at 24 news breaker, where he provides readers with in-depth coverage of the most pressing issues affecting the world today. With a keen insight and a deep understanding of international politics and economics, Alfred’s writing is a must-read for anyone seeking a deeper understanding of the world we live in.