Data: Office for Labor Statistics; Diagram: Axios Visuals
The US economy added 311,000 jobs in February, the Labor Department said on Friday, continuing a hot hiring wave that has underpinned the country’s tight job market.
Why it matters: Employers continued to add new workers to the payroll at a very rapid pace – despite months of rising interest rates that should dampen that demand.
Based on the numbers: The unemployment rate rose to 3.6% from 3.4% as layoffs rise and more workers re-enter the workforce. However, the unemployment rate is still near its lowest level in more than 50 years.
- The payroll report showed the economy added 504,000 jobs in January, down 13,000 from the number originally reported. Meanwhile, December earnings were revised down to 239k from 260k.
where it says: A raft of government data earlier in the year suggested the economy had picked up speed, with a strong bout of hiring and resurgent inflationary pressures.
- And this despite aggressive moves by the Federal Reserve to slow the economy to bring down inflation.
- Economists viewed the February payroll release as a report that could confirm whether these data represent an anomaly.
- The stakes are high: Fed Chair Jerome Powell said this week the central bank could return to a larger rate hike at its policy meeting later this month if other data points to a revival in economic activity.
In February, Average hourly earnings – a measure of wage growth – rose by 0.2%. For the year to February, hourly wages are up 4.6%.
- Meanwhile, the percentage of those in work or looking for a job (known as the activity rate) rose to 62.5% from 62.4% in January.
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