US likely to report another month of solid hiring for Feb.
The latest data out from the Bureau of Labor Statistics on Friday has shown that the American job market proved to be far more than it was anticipated to be at first. There also has been a substantial rise in the number of incorporated self-employed, with a gain of more than 400,000 (7.6 percent) over the last two years.
Some caution is in order here.
Danske Bank said in a research note to investors that the mix of strong jobs growth, modest wage inflation and rising labour force participation is "perfect for risk markets".
Friday's jobs report is sure to be closely monitored by the Federal Reserve and presidential candidates as a gauge of how well the economy is extending its 6½-year rebound from the Great Recession. As for the Fed, this was a decent report but not one that would hold anybody's feet to the fire to raise rates later this month. "The unemployment rate is declining for virtuous reasons". As unemployed people see family and friends getting hired, it boosts confidence in their own ability to find work.
"There seems to be an alternative reality out there, from some of the political folks, that America's down in the dumps", he told reporters. According to NBC News, the unemployment rate remains at 4.9 percent.
To alleviate a thin supply of bakers, deliverymen and other workers, Toppers has been raising wages, easing the application process, highlighting opportunities for promotions and investing in technology that allows customers to order digitally, a step that eliminates the need for some labor.
What it shows, analysts said, is that after years of weakness the labor market is proving able to absorb both newcomers and returnees. Yet between January and February, earnings fell slightly in a clear setback.
Still, there's no question that a growing labor force is good news on balance. China, the world's second-largest economy, is struggling with high corporate debts and slower growth.
Temp jobs still increased 3.04% year over year, although the growth rate has been trending down. Over the past three months, employers have added a strong 228,000 jobs.
Economists were expecting 190,000 new positions and no change in the jobless figure. But over the past three months, the economy has added jobs at about the same pace as it did in 2015. The actual job growth far exceeded that.
Last month's biggest job gains were in health care and social assistance (57,000), retail trade (55,000), food services and drinking places (40,000), private educational services (28,000) and construction (19,000).
The surge in hiring is the best evidence yet that companies are looking past the turmoil in financial markets and weak global growth as American consumers sustain the economic expansion.
"This was a mixed report with positives in the overall jobs figure for February, upward revisions to prior months, and another strong month for labor force entrants", said NAFCU chief economist Curt Long.
"If labor demand was really about to fall, why was there such a sharp rise in employment?" said Harm Bandholz, chief US economist at UniCredit in NY.
Manufacturers and energy companies also eliminated more higher-paid jobs as they cope with falling exports (http://www.marketwatch.com/story/us-exports-fall-to-lowest-level-since-mid-2011-2016-03-04) and cheaper oil prices.
Mar 05 2016