[ 2016-03-07 ]

US creates 242,000 jobs in February
The US economy added 242,000 jobs in February, far
better than the 190,000 expected by economists.

The Labor Department numbers underlined the
strength of the US economy and may allow the
Federal Reserve to gradually raise interest rates
this year.

Another 30,000 jobs were also added to the
previous estimates for December and January.

The unemployment rate was unchanged from January
at 4.9% - an eight-year low.

Luke Bartholomew, investment manager at Aberdeen
Asset Management, said: "This should scotch
suggestions that the US is about to tip into
recession. It's yet more evidence that the labour
market is in good shape, although wage growth was
more disappointing."

The year-on-year growth in average hourly earnings
slowed to 2.2% last month from 2.5% in January.

Last week, official figures indicated that the US
economy expanded at an annualised pace of 1% in
the quarter, compared with an initial estimate of
0.7%.

The strong jobs market and improved growth
outlook, together with signs that inflation is
creeping up, could prompt the Fed to raise rates
in the summer.

It did so in December for the first time in nearly
a decade - a decision that had been criticised by
some for holding back the economic recovery.

Services growth

However, Chris Williamson, chief economist at
Markit, questioned whether the Fed would act
anytime soon.

"Current signs of rising inflationary pressures
and a tightening labour market need to be viewed
alongside indications that the pace of economic
growth may be slowing, and possibly sharply, amid
growing concerns about the outlook," he said.

"The big question will be the extent to which the
Fed heeds the warning lights flashing in the
background."

The services sector created 245,000 jobs last
month after adding 153,000 jobs in January, while
construction added 19,000 positions and government
added 12,000.

However, mining lost a further 18,000 jobs after
shedding 9,000 positions the previous month, and
the manufacturing sector shed 16,000 jobs,
reversing some of January's surprise increase.

Boeing

Meanwhile, the US trade deficit rose in January as
exports fell for a fourth consecutive month.

The Commerce Department said the gap between
exports and imports climbed to $45.7bn in January
from a revised $44.7bn in December.

Exports of goods and services fell 2.1% in January
to $176.5bn - the lowest since June 2011. US
exporters have been hurt by a global economic
slowdown and by a strong dollar that makes US
products more expensive overseas.

Imports fell 1.3% to $222.1bn - the lowest since
April 2011.

Source - BBC

... go Back