The job market posted another strong performance in February, as employers created 273,000 jobs despite an economic slowdown, worker shortages and early fears of coronavirus.
The unemployment rate fell from 3.6% to 3.5%, corresponding to a low of 50 years, announced Friday the Ministry of Labor.
Also encouraging: the job gains for December and January have been revised upwards by 85,000 in total. December increased from 147,000 to 184,000 and January increased from 225,000 to 273,000.
Many economists have said that coronavirus problems are not expected to significantly affect total employment in February, as the epidemic did not begin to have a greater impact on the economy and the stock market until late February. The employment survey was carried out earlier in the month. However, the epidemic could significantly reduce payroll gains in the coming months.
Before concerns about coronaviruses arose, business confidence was further boosted by the easing of US trade tensions with China after their phase 1 agreement, said Goldman Sachs. Job growth was also underpinned by unusually light snowfall and historically low unemployment, which created worker shortages and prompted some companies to continue hiring in the spring until the end of winter, said Goldman.
Hiring for the 2020 census is also expected to create about 20,000 temporary government jobs last month, said Morgan Stanley.
But many economists expect the job market to soften considerably over the next few months as the economic impact of the coronavirus increases. The Dow Jones industrial average has seen wild swings in the past two weeks, plummeting nearly a thousand points Thursday, amid concerns over the ultimate effects of the epidemic on the economy and corporate profits.
“Market liquidations, weaker global demand, tight supply chains and increased economic uncertainty will weigh on companies’ sentiment and ability to weather the storm,” said Morgan Stanley in a research note. .
Even before the virus epidemic, economists expected average monthly job growth to slow from 175,000 last year to just over 100,000 at the end of 2020 due to the slowdown economic growth and employers’ difficulties in finding workers.
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Wage growth accelerates
Average hourly wages rose 9 cents to $ 28.52, increasing the annual gain from 3.1% to 3%.
After accelerating to 3.5% at the end of 2018, wage increases hovered around 3% despite a drop in unemployment which made it more difficult for companies to find skilled workers.
Moderate gains have limited household income but have also helped contain inflation, allowing the Federal Reserve to lower interest rates several times since last summer.
Hiring industries
Education and health care led job gains with 56,000 jobs. Leisure and hospitality added 51,000; professional and commercial services, 41,000; and financial activities, 26,000.
Construction added 42,000 jobs, its second strong performance in a row, indicating that favorable weather conditions may have boosted employment. And manufacturing added 11,000 despite the first disruptions in the supply chain triggered by the coronavirus and the cessation of production of the airliner Boeing 737 Max following two fatal accidents. Manufacturers are at risk of laying off workers as the effects of the epidemic continue to affect deliveries of parts and retail goods.
