Slow but steady growth in the past month. People still on tenterhooks, wondering about the impact of tariffs, so a lot of wait-and-see frustration/anticipation.
Unemployment Rises Slightly to 4.1%
Jobs Growth
The economy added 151,000 new jobs in the latest reporting month. This level of activity initially looked to be in line with January’s hiring level of 143,000. However, a downward revision of 18,000 fewer jobs in January resulted in a revised tally of 125,000 new jobs, offering a comparatively stronger showing for the February report.
Top Industries
New growth was most evident in healthcare, financial activities, construction, transportation and warehousing, and social assistance. Losses were recorded in both leisure and hospitality and the retail sectors. In addition, the government sector was down by 10,000 federal jobs.
Unemployment
There was little change in the unemployment rate from January to February, when the rate moved from 4.0% to 4.1%.
Wages
Average hourly earnings rose by 0.3% in February, shifting the 12-month average to 4.0%.
Work Week
There was no monthly change in the average work week, which remained at 34.1 hours in February.
Temporary Job Trends
The squeeze on the temporary jobs sector continued in February, with a loss of 12,300 jobs.
What Does It All Mean?
The labor market offered a “steady as you go” type of activity report for February. The rate at which new jobs were created kept a fairly even pace with the previous month. There was again little movement in most other labor market indicators, from the unemployment rate to wages to the length of the work week.
In the absence of big shifts, small variations take on greater significance. Perhaps for that reason, even though the February jobs report did not offer any startling news or insights about the future, it did lead a number of analysts to characterize it as solid and stable but “soft.” The evidence? A dip in the employment-to-population ratio, coupled with slight upward movement in the jobless rate; labor force participation rate; and the number of people either working part-time or holding multiple jobs.
There is no question that the level of activity in the labor market has slowed in recent months. There are fewer hires, fewer quits and the pace of movement, either out of
jobs or into new ones is more measured than has been seen in a long time. For some, this seems like a natural evolution after the frantic ramping up that followed the pandemic. Many others are more likely holding a collective breath in anticipation of what lies ahead as new economic policies are revealed.
Until that time, employers should capitalize on this opportunity to make thoughtful hiring decisions that will ensure the most successful outcomes as the year unfolds.
Sources: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, CNN, CNBC, Bloomberg, Reuters, The New York Times, FOX Business
