February employment numbers were released with a surprisingly high number of jobs created at 313,000. Based on the most recent information, it appears that companies are hiring “at a rapid enough pace to bring the long-term unemployed off the sidelines.” In addition to the jobs jump, a lower increase in wages at 0.1% is decreasing fears of inflation after last months jump.
“February’s job growth was 50 percent more than expected by economists, and the unemployment rate was steady at 4.1 percent. Besides the stunning number of new jobs, economists pointed to the surprise jump in the labor participation rate of 0.3 percent to 63 percent, meaning slack is being eliminated.” This news has brought a positive reaction to the markets with a 300 point jump in the Dow Jones after fear of an increase in steel and aluminum tariffs.
The growth in employment was found in a number of sectors particularly 61,000 in construction and 50,000 in retail after a 26,000 decline in December.