US employers added 242,000 jobs in February, marking 72 months of straight job gains, according to data from the Bureau of Labor Statistics.
The unemployment rate, which is derived from a separate survey of households, was unchanged at 4.9 per cent, an eight-year low.
Job gains in December and January combined were revised up by 30,000. December’s job gains were revised from 262,000 to 271,000. January’s job growth report was revised from 151,000 to 172,000.
The labour-force participation rate – the share of working-age Americans in the labour force – rose from 62.7 per cent in January to 62.9 per cent, the highest level in a year as more than a half million people joined the labour force. The rate, though, remains at historically low levels.
The number of people working part-time for economic reasons – or those working part-time, because they couldn’t find full-time employment – was unchanged, at 6 million. The number of marginally-attached to the labour force – those who would like to work, but have not been actively looking for a job or are discouraged – declined to 1.8 million from 2.1 million in January. A broader measure of unemployment – which includes marginally-attached to the labour force and those working part-time for economic reasons – dropped from 9.9 per cent to 9.7 per cent.
The number of long-term unemployed – those individuals who are without work for 27 weeks and more – rose by 76,000 to 2.16 million.
Job gains were broad-based. Health care and social assistance added 57,400 jobs. Retailers hired 54,900 workers, a second month of strong employment gains. The leisure and hospitality sector gained 48,000 jobs. Construction companies added 19,000 positions. The manufacturing sector shed 16,000 jobs after a 23,000 advance in January. The mining and logging sector, which includes the oil and gas industry, lost 18,000 jobs. Employment at all levels of government was up by 12,000.
The average workweek for all private sector workers fell by 12 minutes to 34.4 hours.
The current economic expansion began in mid-2009, but weak pay growth exacerbates the feeling that the benefits of the recovery have not been shared with all Americans. Average hourly earnings for all workers fell by 0.1 per cent on the previous month, putting an annual gain at 2.2 per cent.
The US economy is growing steadily at the moment, despite weaker growth overseas, market turmoil, a strong dollar and low oil prices, which are good for consumers, but not for the energy industry as cheap crude dents profits, forcing companies to slash capital spending and employment.
Year-on-year wage growth at just above 2 per cent makes it more difficult for the Federal Reserve to achieve its 2 per cent inflation target. After lifting short-term interest rates in December for the first time in nearly a decade, the Fed’s rate-setting committee is unlikely to raise rates at its meeting this month, because of rising concerns about the potential impact of overseas economic and financial developments on the US economy.
Photo: Metropolitan Transportation Authority / Patrick Cashin
