Better than anticipation job creation figures were reported in February by the US Bureau of Labor Statistics. Payrolls rose by 242,000, surpassing expectations of 190,000, after having risen by a revised 172,000 in January. While the headline figure was positive, there were several negative implications, namely declining average hourly earnings. Despite the drop, the addition of jobs is expected to boost consumption and encourage spending, lifting the country’s economic growth. The US economy continues to add more jobs despite recent turmoil in financial markets and a global economic slowdown. The unemployment rate stayed flat at 4.90%, matching both expectations and the prior figure. The data could prove a silver lining for Federal Reserve officials as they prepare for the upcoming FOMC meeting after a disappointing start to the year derailed expectations of additional rate hikes in 2016.
U.S. Nonfarm Jobs Soar – Market Looking to Fed
Daily Analysis - 07/03/2016