About 151,000 new jobs were added to the U.S. economy in February, slightly below what had been forecast, while the unemployment rate was basically flat at 4.1%, according to estimates from the U.S. Bureau of Labor Statistics.
Employment trended up in health care, financial activities, transportation and warehousing, and social assistance.
Federal government employment declined.
The number of unemployed people, at 7.1 million, was basically flat in February compared with January.
The unemployment rate has remained in a narrow range of 4.0% to 4.2% since May 2024, the BLS says.
The number of long-term unemployed (those jobless for 27 weeks or more), stood at 1.5 million – also basically flat in February.
The long-term unemployed accounted for 20.9% of all unemployed people.
The labor force participation rate, at 62.4%, was flat month-over-month and has changed little over the past year. Same goes for the employment-population ratio, which decreased by 0.2 percentage points to 59.9%.
Wages continued to increase slowly: In February, the average hourly wage for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $35.93.
Over the past 12 months, average hourly earnings have increased by 4.0%, according to the BLS.
In February, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3%, to $30.89.
“While slightly below consensus estimates, the February Jobs Report showed a modest uptick from January, though still weaker than the final months of 2024,” says Sam Williamson, senior economist for First American, in a statement. “All in all, it signals a stable labor market, but it does not reflect recent federal workforce restructuring efforts, nor recent staff reduction announcements from companies like companies like Starbucks, Meta Platforms, and Southwest Airlines.”
“With the labor market holding steady, a Fed rate cut in March remains unlikely, as policymakers stress the need for disinflation or labor market softening for further cuts, but a June cut remains on the table,” Williamson says. “However, there is a silver lining for housing and home buyers. In February, the 10-year yield fell by over 40 basis points, likely due to weakening business and consumer confidence amid recent political turbulence in Washington. Further economic weakness could trigger a renewed flight to safety, driving the yield on 10-year Treasury notes even lower, which would pull mortgage rates down further ahead of the spring home-buying season, potentially enhancing housing affordability.”
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