U.S. Lost 92,000 Jobs in February
S E E D E D C O N T E N T
The U.S. lost 92,000 jobs in February, a sign that the job market continues to struggle across a broad range of sectors.
The hiring numbers , reported Friday by the Labor Department, fell far short of January’s gain of 126,000 jobs. They were worse than the gain of 50,000 jobs that economists polled by The Wall Street Journal had expected to see.
The unemployment rate ticked slightly higher to 4.4%.
The numbers raise expectations that the Federal Reserve will have to cut rates.
For the Fed, a labor market stumble comes at an uncomfortable moment because policymakers are already contending with new potential disruptions to energy and commodity prices following the U.S.-Israel military campaign in Iran that has closed key global shipping lanes. Those disruptions raise the prospect of another bout of price increases in an economy where inflation has been above the Fed’s 2% goal for five years.
A central bank that simultaneously watches the job market weaken and inflation risks re-emerge has few good options.
While the Fed is expected to hold rates steady at its meeting later this month, the February employment report will revive questions about whether last year’s three rate cuts were sufficient to protect the labor market and keep the possibility of a midyear cut alive.
U.S. Treasury yields fell after the report, reflecting the increased expectations that the Fed will have to lower rates.
U.S. stock futures, which were in the red before the report, turned further downward.
The labor market slowed markedly last year, with the U.S. adding the fewest jobs outside of a recession since 2003. That was in part due to the Trump administration’s cuts to the federal workforce through a combination of layoffs and voluntary buyouts, but it also reflected the cautious approach to hiring that many businesses adopted to combat uncertainty about tariffs and other policy measures. Expectations that artificial intelligence could reduce staffing needs might have further cut into hiring plans.
Despite some high-profile announcements, the overall level of layoffs remains low. But businesses are limiting the number of new workers they take on. Moreover, job growth was highly uneven, with the healthcare and social-assistance sectors driving gains over the past year, and most other sectors shedding jobs.
The job slowdown, alongside persistent cost-of-living concerns, has eaten into Americans’ confidence. In its most recent survey of consumers, the University of Michigan found that 58% of respondents expected unemployment to rise over the next year.
Even so, while the unemployment rate has drifted higher over the past year, it remains low by historical standards. And economists are hopeful that job growth will be better this year, particularly as tax cuts flow into the economy—though the Iran war, and the gasoline-price increases it has brought on, add a new wrinkle.
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"Bigger, better, richer and stronger ... " Meh, maybe in July?
The economy was slowing down... very slowly. Surprisingly slowly.
So... of course... the Clowns added a war.
Makes Venezuelan oil more attractive to producers ... and Trump's pocketbook.
But...
Where are these people getting their numbers from?
From a Link in the article buttonized above:
So it is strictly private sector from a payroll perspective.( Automatic Data Processing, Inc = ADP)
I wonder which is more accurate a reflection of the employment situation across the country and what stock we should put in eithers numbers? Is one more significant than the other for different areas and sectors? These and many more questions come to mind when I read something such as this. I dug in a wee-little bit. Maybe I can spark the inquisitiveness of others?
Trump has created so many economic headwinds that a slowdown is almost inevitable. The manufacturing and construction sectors have contracted. The Leisure & Hospitality sector is showing early signs an uneven deep contraction. The Health Care sector is under pressure. And now the Information & Tech sectors are showing signs of softness because of defensive investments.
The impact of tariffs (without commensurate Federal investment) has created a lagged headwind throughout the economy, as we have seen from last year's data. The cuts to government spending, notably for Medicaid and ACA premiums, has slowed health care spending. And now the Trump administrations more aggressive military activities are competing for economic output with little chance of providing economic return.
Trump has essentially abandoned all of his America First economic policies. The Trump administration is playing with Federal policy and expenditures to create false flags, such as GDP growth, to hide growing weakness and instability in the economy. Congress, as usual, is playing 'culture war' politics and allowing the economy to erode.
Trump is actually creating the neoliberal wet dream of an 'every man for himself' economy. No, this is not going to end well.