Tweet
Good news. 262,000 new non-farm jobs were announced for February and downward revision of 14,000 was made for January's job numbers, leaving a net +248,000 new jobs announced. The economy went completely into expansion in January (net jobs from the last peak of February '01 to January '05 finally were positive).
The underlying components of this job growth are healthy. Over 90% of the new jobs are in the private sector. Another couple of months of this and the private sector can be said to finally be completely in expansion mode.
The underlying components of this job growth are healthy. Over 90% of the new jobs are in the private sector. Another couple of months of this and the private sector can be said to finally be completely in expansion mode.
US February job growth tops expectations
By Christopher Swann in Washington and wires
Published: March 4 2005 13:46 | Last updated: March 4 2005 13:46
US jobs imageThe US created 262,000 jobs in February, the biggest gain in four months, surpassing expectations and reinforcing confidence in the sustainability of economic growth.
ADVERTISEMENT
Economists have become accustomed to seeing the payroll figures fall short of their expectations. On Friday, however, they were confronted with the novel situation of having underestimated job growth. The average forecast was for an increase of 218,000.
There was a slight downward revision to job growth in January which was lowered by 14,000 to 132,000. But economists said the figures reduced the threat of an abrupt slowdown in consumer spending.
Nevertheless, a surge of new workers onto the market pushed the unemployment rate up from 5.2 per cent to 5.4 per cent.
There are also no signs yet that the improving market is helping boost the bargaining position of workers. Average hourly earnings was unchanged over the month.
The number of people unemployed for more than 27 weeks - the amount of time Americans are entitled to Federal jobless benefits - was unchanged at 1.6m - a fifth of the total unemployed.
With the economy no longer being boosted by mortgage refinancing and tax rebates, employment and wage growth will be crucial in determining the pace of consumer spending growth.
A survey released on Friday showed consumer sentiment fell more than expected in the month, Reuters reported. The University of Michigan’s consumer confidence index for February fell to 94.1 from January’s 95.5, according to Reuters’ sources who saw the subscription-only report.
Analysts had expected expected a figure of 95.45.
Most economists assume job growth needs to achieve an average of about 150,000 a month in order to absorb new workers entering the market.
Shares rose in early trade on Friday. The Dow Jones Industrial Average was up 74 points at 10,906 and the Nasdaq rose 10 points to 2,068.
By Christopher Swann in Washington and wires
Published: March 4 2005 13:46 | Last updated: March 4 2005 13:46
US jobs imageThe US created 262,000 jobs in February, the biggest gain in four months, surpassing expectations and reinforcing confidence in the sustainability of economic growth.
ADVERTISEMENT
Economists have become accustomed to seeing the payroll figures fall short of their expectations. On Friday, however, they were confronted with the novel situation of having underestimated job growth. The average forecast was for an increase of 218,000.
There was a slight downward revision to job growth in January which was lowered by 14,000 to 132,000. But economists said the figures reduced the threat of an abrupt slowdown in consumer spending.
Nevertheless, a surge of new workers onto the market pushed the unemployment rate up from 5.2 per cent to 5.4 per cent.
There are also no signs yet that the improving market is helping boost the bargaining position of workers. Average hourly earnings was unchanged over the month.
The number of people unemployed for more than 27 weeks - the amount of time Americans are entitled to Federal jobless benefits - was unchanged at 1.6m - a fifth of the total unemployed.
With the economy no longer being boosted by mortgage refinancing and tax rebates, employment and wage growth will be crucial in determining the pace of consumer spending growth.
A survey released on Friday showed consumer sentiment fell more than expected in the month, Reuters reported. The University of Michigan’s consumer confidence index for February fell to 94.1 from January’s 95.5, according to Reuters’ sources who saw the subscription-only report.
Analysts had expected expected a figure of 95.45.
Most economists assume job growth needs to achieve an average of about 150,000 a month in order to absorb new workers entering the market.
Shares rose in early trade on Friday. The Dow Jones Industrial Average was up 74 points at 10,906 and the Nasdaq rose 10 points to 2,068.
Comment