Saturday, April 9, 2016

JOBS REPORT: Employers Added 215,000 jobs In February, Unemployment Rate Ticks Up To 5.0%

According to the Bureau of Labor and Statistics U.S. job growth increased by 215,000 in March, and the unemployment rate was little changed at 5.0 percent. Employment increased in retail trade, construction, and health care. Job losses occurred in manufacturing and mining.

With this report the private sector will be celebrating a record shattering 73rd straight month of job growth adding 14.4 million jobs since President Obama has taken office.

Here is a graphic from the US Department Of Labor showing the Bush economy transitioning into the Obama economy...

Here's how the Jobs Report numbers breaks down...

  • U.S. job growth increased by 215,000 in March blowing past economists' target of 205,000.
  • In March, the unemployment rate (5.0 percent) and the number of unemployed persons (8.0 million) were little changed. Both measures have have remained stable since August.
  • The uptick in the unemployment rate is due to workforce expansion - The rapidly growing number of workers has helped stall the decline in the overall jobless rate which explains why the unemployment rate increased last month to 5.0% from 4.9% in February.
  • Unemployment rates for adult men (4.5 percent), adult women (4.6 percent), teenagers (15.9 percent) showed little or no change. 
  • Increased labor force participation signals broad strength - In addition to dampening overall joblessness, the increase in the labor force has helped reverse declines in the labor force participation rate, which rose to a 2-year high of 63% last month.
  • The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged.
  • In March, the labor force participation rate (63.0 percent) and the employment-population ratio (59.9 percent) changed little. 
  • In March, 1.7 million persons were marginally attached to the labor force, down by 335,000 from a year earlier. (The data are not seasonally adjusted.)
  • Employment gains occurred in retail trade, construction, and health care, while job losses occurred in manufacturing and mining.
  • Employment in other major industries, including wholesale trade, transportation and warehousing, information, and government, changed little over the month.
  • In March, average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents to $25.43, following a 2-cent decline in February.
  • Over the year, average hourly earnings have risen by 2.3 percent. In March, average hourly earnings of private-sector production and nonsupervisory employees increased by 4 cents to $21.37
  • In some additional positive news the nonfarm payroll employment numbers for February was revised from +242,000 to +245,000.
  • Over the past 3 months, job gains have averaged 209,000 per month.

Here are some economic analyst take on this months report...

Mark Zandi, chief economist at Moody's Analytics said...

"The job market continues on its amazing streak. The March job gain of 200,000 is consistent with average monthly job growth of the past more than four years. All indications are that the job machine will remain in high gear."

Jim Baird, chief investment officer at Plante Moran Financial Advisors says...

The persistently low level of claims should provide some reassurance that the economy is growing, even if that growth appears more sluggish that most would have hoped a few months ago,

Gus Faucher, deputy chief economist at PNC Financial in Pittsburgh said...

"The labor market is on a solid footing. Layoffs are low, hiring is good, and workers who do lose their jobs are finding new ones quickly,"

Chris Rupkey, chief economist at MUFG Union Bank in New York said...

"The fears of world economic growth (slowing) are not causing a concern for business owners here in the U.S. with all the help wanted signs up in the windows,"

On a final note Fed Chairwoman Janet Yellen said in a speech last week that the central bank policymakers expect the labor market to continue to strengthen. Yellen then addressed interest rate hikes stating that a tighter job market should push up wages, which have grown at a weak pace during the recovery. But the sluggish wage growth and low oil prices have kept inflation low. Yellen cited inflation as well as concerns about the global economy as reasons Fed policymakers would "proceed cautiously" in deciding when to enact another increase in a key short-term interest rate.

Good stuff as the Obama economy continues to chug along!

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