Employment Situation: More Solid Gains With Modest to Moderate Wage Growth
March 9, 2018
Bottom Line: Job creation in February was significantly higher than expectations. Gains were broad-based with the prior months revised higher. The unemployment rate was unchanged with the labor force growing modestly. While the deceleration from 0.3% to 0.1% in average hourly earnings will grab headlines, this was not enough to changes the trend, which is towards modestly higher wages. Average weekly earnings rose 0.4% with the index of aggregate weekly hours in the private sector jumped 0.6%. Overall, this was a strong report showing strong job creation, an uptick in labor force participation and modest to moderate wage growth.
Payroll Employment rose by 313k in February, compared with market expectations for an increase of 205k. The prior 2 months were revised, higher in January by 39k and higher in December by 15k.
Government jobs ROSE by 26k. Consequently, private sector jobs ROSE by 287k.
Overall employment is now 1.6% ABOVE its year ago level, Over the past 12 months, 2,281k jobs have been created.
- In February, the job gains were in Trade, Transportation & Utilities (+22k with 50k of those in Retail Trade),
- Professional & Business Services (+50k with the addition of 26.5k in Temp Help Services),
- Construction (+61k),
- Manufacturing (+31k),
- Education & Health Services (+29k),
- Financial Activities (+28k), Government (+26k), and
- Leisure & Hospitality (+16k).
- Jobs were shed in Information (-12k).
Article by
Contingent Macro Advisors