U.S. job growth beats expectations in February; wages rise moderately
The Hindu
Estimates for February payrolls ranged from as low as 78,000 to as high as 3,25,000 jobs.
The U.S. economy added jobs at a solid clip in February, likely ensuring that the Federal Reserve will raise interest rates for longer, though wage inflation showed signs of cooling.
Nonfarm payrolls increased by 3,11,000 jobs last month, the Labour Department's closely watched employment report showed on Friday. Data for January was revised lower to show 5,04,000 jobs added instead of the previously reported 5,17,000.
Economists polled by Reuters had forecast job growth of 2,05,000. They say the economy needs to create 1,00,000 jobs per month to keep up with growth in the working-age population.
Estimates for February payrolls ranged from as low as 78,000 to as high as 3,25,000 jobs.
The larger-than-expected increase in payrolls suggested that January's surge in hiring was not a fluke.
Economists had argued that job growth in January was flattered by a host of factors, including unseasonably warm weather, annual benchmark revisions to the data as well as overly generous seasonal adjustment factors, the model the government uses to strip out seasonal fluctuations from the data. Robust consumer spending growth in January was also partially attributed to seasonal factors.
Average hourly earnings rose 0.2% last month after gaining 0.3% in January. That raised the year-on-year increase in wages to 4.6% from 4.4% in January, in part as last year's low readings dropped out of the calculation.