At the same time, payroll processor ADP reported a solid gain of 214,000 private-sector jobs last month. More than 2.7 million workers hired over the past 12 months have bolstered spending on autos, housing and meals out.
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The unemployment was subsequently unchanged from the previous month at 4.9%, holding at its lowest level since February of 2008. Construction employment was a bright spot within goods producing industries, adding 19,000 jobs in February.
Stock investors appeared to cheer last month’s job growth.
Strong employment gains were recorded in health care, retail trade, and restaurants.
Meanwhile, the Labor Department also said average hourly employee earnings dipped 3 cents or 0.1% to USD25.35. Earnings actually fell slightly between January and February in a sign that an expected liftoff in incomes has yet to be achieved.
Economists say the improved growth outlook, together with signs of inflation creeping up, could prompt the US central bank to lift borrowing costs in June. That brings the total net jobs created in the last three months to 685,000, and total job creation during President Obama’s second term to almost 8 million. The majority of new service jobs were in education and healthcare, which added 86,000.
Friday’s jobs report is sure to be closely monitored by the Federal Reserve and presidential candidates as a gauge of how well the economy is extending its 6-year rebound from the Great Recession. Productivity growth is linked to higher wages.
Comparing Santa Clarita’s unemployment numbers to Los Angeles County cities with a labor force of more than 70,000, the city sits right in the middle of the pack with Torrance coming at 4.1 percent and Glendale at 5.8 percent.
Their argument is that jobs growth has been above 200,000 for so long because there has been a steady supply of surplus labor – largely from unemployed workers and those transferring from the non-payroll sector – flowing back into the labor market. And the unemployment rate is expected to remain at a low 4.9 percent. “However, we should not be too surprised about a slowdown as the labor market approaches full employment”, said chief USA economist at UniCredit Research in NY.
US stock futures saw a slight rise after the report, as did the USA dollar. Job growth has been strong recently, with an average of 228,000 jobs added per month over the last 3 months.
Bankrate.com senior economic analyst Mark Hamrick told the Post that the job reports indicate the financial markets’ “panic over a possible recession in the USA has been misplaced”.
Professional and business services that mostly employ white-collar workers such as technicians and software developers only added 23,000 jobs.
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Fed policymakers have been concerned that inflation remains low.
