A Pretty Phenomenal Jobs Report in February
The economy created more jobs than economists were expecting in February, according to the latest data from the Bureau of Labor Statistics.
- Total nonfarm payroll employment rose by 275,000 in February, up from the revised 229,000 in January but still below December’s revised 290,000.
- The unemployment rate rose to 3.9% in February, up from 3.7% in January and at the highest level since December 2021.
Beat The Street. Economists were expecting a smaller 200k jump in February.
Well Rounded Report. Healthcare was the top job creator in this report adding 67,000 jobs in February. The government took the number two spot with 52,000 jobs followed by food services & drinking (42k), social assistance (24k), and construction +23k).
Wages. Average hourly earnings for all employees on private nonfarm payrolls edged up to $34.57, in February, up 0.1% from the prior month and the smallest increase since March 2021.
- Wages are up 4.3% year-over-year in February, down from 4.4% in January but the same level that was reported in December and November.
- Consumer prices are expected to hold year-over-year at 3.1% in February which would mean wages have outpaced inflation for the 10th straight month.
Downward Revisions. Some big time revisions in this report as January was revised downward by
124,000 to +229,000 while December’s report was revised down by 43,000 to +290,000.
BOTTOM LINE: Job growth continued to defy expectations while wage growth almost stalled. When it comes to how the Fed evaluates jobs reports this is as good as it gets.
