Exceptionally strong jobs report guarantees aggressive rate hikes to come

Reuters  Mike Blake

The number of job seekers has stabilized in recent years, but last month showed a slight 0.3 percent increase from January.

Fed policymakers, who are now considering the jobs market to be near or a little beyond full employment, are widely expected to raise the benchmark interest rate when they meet later this month under the new chairman Jerome Powell.

United States chief economist Beth Ann Bovino said a stronger jobs report with another healthy wage gains improves the odds of the bank having a fourth rate hike before the end of the year.

The Department of Labor also revised job growth numbers upward in both December and January, adding another 64,000 jobs.

Construction jobs led the way, with 61,000 new positions, followed by retail and professional and business services (50,000 apiece), manufacturing (31,000) and financial activities (28,000). "Having said that, if we see the February payrolls number sustained, which seems unlikely, that keeps the inflation question very much in play". The participation rate increased to 63 percent, the highest since September, from 62.7 percent the prior month, the biggest monthly gain since 2010. The theory is that low unemployment will create more competition for jobs, forcing employers to boost compensation to attract new workers. Over the year, average hourly earnings have increased by 68 cents (+ 2.6 %).

But Ms Koropeckyj said she does not expect the labour force to continue growing at last month's pace, pointing to challenges such as skill gaps and opioid addiction. "JOBS! JOBS! JOBS!", he wrote, adding the hashtag "#MAGA" to invoke his campaign trail slogan: "Make America Great Again". "There could still be some more shadow slack". That is quite a turnaround from the sluggish job growth experienced in 2016, and it is a sign that that firms have continued to accelerate their hiring as the economic outlook has strengthened and demand and production have improved considerably. (Some of the post-tax-cut compensation announcements over the past few months were ultimately credited to this pressure.) In February, average hourly wages rose a modest 4 cents, after a 7-cent increase in January. They popped last month, spurring a stock-market selloff as skittish investors anxious that the Fed might hike rates faster than expected. In January, when the reading came in 2.9% over the previous year, the 10-year Treasury yield spiked, the 30-year fixed mortgage rate hit its highest point in four years and stock prices slumped. February's restrained wage growth tells us that businesses aren't yet struggling to find the workers they need.

Related news:

Hot News

isis-killer-beheading-video-story-top Arsenal unlikely to finish in EPL top four: Laurent Koscielny
Mar 09, 2018 - 20:11
In the meantime, he has taken aim at Arsenal Fan TV, suggesting those involved are not true Gunners supporters. Why am I including the last two to the list? "When you have bad results its always bad for the team", he said.

isis-killer-beheading-video-story-top China 'Strongly Opposed' to Trump's Steel, Aluminum Tariffs
Mar 09, 2018 - 15:28
It was a decision that served the interests of Americans as well as businesses and workers in this country and Mexico . Moscovici said he wanted American lawmakers to know that imposing tariffs "would be a "lose-lose" situation".

isis-killer-beheading-video-story-top Notre Dame vs. Duke
Mar 09, 2018 - 13:55
I didn't say much at halftime. "You know, look, I hope they get in because I think they can beat anybody", Krzyzewski said. We can't have a game where we don't show up. "No matter what happens, we'll be accepting and proud".

isis-killer-beheading-video-story-top USA Tournament 2018: Bracket, schedule, scores, teams, and more
Mar 08, 2018 - 09:56
The Cowboys are in a similar spot as the Bears in that they weren't supposed to be in this spot a month ago. Until then, just enjoy the next few days of college basketball and let the chips fall where they may.