WASHINGTON–The strong numbers shown in Friday’s jobs report continue to exceed most analysts’ expectations, but aren’t quite as strong as they appear at first blush, according to one credit union economist.
The new data from the Labor Department show
Employers added a seasonally adjusted 275,000 jobs in February.
But the unemployment rate rose to 3.9%, higher than projections of 3.7% and a half-percentage-point increase since a recent low in April 2023. Average hourly earnings rose 0.1% from the previous month.
"Results from the February jobs report were somewhat soft, though not alarmingly so,” said Curt Long, VP-research and chief economist with Americas Credit Unions. “The unemployment rate climbed to its highest level in two years, and while the establishment survey indicated that payrolls grew by a healthy 275,000, January saw a sharp downward revision. Wage growth slowed in February, but average hours worked increased.
“Overall, this report brings a rate cut more firmly into view, which the Fed will most likely deliver in the second quarter,” Long added.
As Long noted, the Labor Department revised lower its readings from the previous two months. The economy added 229,000 jobs in January, down from the 353,000 the department had earlier indicated.
No Rate Cut in Near Future
“Friday’s mixed report suggested that the U.S. economy remains on track for a so-called soft landing despite a knotty inflation fight, noted the Wall Street Journal in its analysis.
While many in credit unions continue to await a rate cut by the Fed, Chairman Jerome Powell made clear in comments this week that no such cut will occur when the central bank next meets on March 19-20.
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