Job creation topped expectations in February, but the unemployment rate moved higher and employment growth from the previous two months wasn’t near as hot as initially reported.
Nonfarm payrolls increased by 275,000 for the month while the jobless rate moved higher to 3.9%, the Labor Department reported Friday. Economists surveyed by Dow Jones had been looking for payroll growth of 198,000, a step slower from the downwardly revised gain of 229,000 in January. The December gain also was revised down to 290,000 from 333,000.
The jobless level increased even though the labor force participation rate held steady at 62.5%.
Average hourly earnings, watched closely as an inflation indicator, showed a slightly less than expected increase for the month and a deceleration from a year ago. Wages rose just 0.1% on the month, one-tenth of a percentage point below the estimate, and were up 4.3% from a year ago, below the 4.5% gain in January and slightly below the 4.4% estimate.
Markets showed little reaction to the news, with futures tied to the major averages around flat. Treasury yields, however, were sharply lower.
“It’s got literally a data point for every view on their spectrum,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said of the report.
Job creation skewed toward part-time positions. Full-time jobs decreased by 187,000 while part-time employment rose by 51,000, according to the household survey. That count is used to calculate the unemployment rate and showed a decline of 184,000 in total employment.
From a sector standpoint, health care led with 67,000 new jobs. Government again was a big contributor, with 52,000, while restaurants and bars added 42,000 and social assistance increased by 24,000. Other gainers included construction (23,000), transportation and warehousing (20,000) and retail (19,000).
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