Type to search

U.S. Adds Surprisingly Strong 295,000 Jobs, But Wage Growth Slows

Economy Top News Tribune News Service

U.S. Adds Surprisingly Strong 295,000 Jobs, But Wage Growth Slows

Share
unemployment at all time low

By Jim Puzzanghera, Los Angeles Times (TNS)

WASHINGTON — U.S. employers shook off some severe winter weather and added a surprisingly strong 295,000 net new jobs in February while the unemployment rate fell to a post-Great Recession low of 5.5 percent, the Labor Department said Friday.

The jump in job creation exceeded economists’ forecasts and was an improvement over January’s 239,000 jobs. But the increase was offset somewhat by a downward revision in December’s and January’s figures by a total of 18,000 jobs.

Wage growth continued to be slow last month. Average hourly earnings rose by just 3 cents to $24.78 after an encouraging 12-cent increase in January.

For the 12 months ended Feb. 28, wages rose by only 2 percent, well above the low inflation rate but not nearly the level economists would like to see coming out of a deep recession.

Part of the reason the unemployment rate fell to its lowest level since May 2008 was that about 178,000 job-seekers dropped out of the labor force. That caused the labor force participation rate to tick down by a tenth of a percentage point to 62.8 percent, near a more-than-three-decade low.

Still, job growth has been strong over the past year. February was the 12th straight month in which the nation added at least 200,000 net new jobs, the best streak since 1994-95.

Job growth has averaged 266,000 during that period. The pace has improved recently, with the economy averaging 288,000 net new jobs from December through February.

“There has been no significant impact from the winter weather during the month,” said Gad Levanon, managing director for economic outlook and labor markets at the Conference Board. “As expected, the lower oil-price level is beginning to shrink employment in the mining industry, but it is not large enough to make a significant dent in the total number of jobs.

Employment by oil and gas extraction companies fell by 9,300 jobs in February from the previous month, the Labor Department said.

The construction industry added 29,000 net new jobs, while factory payrolls increased by 8,000. Restaurants and bars added 59,000 net new jobs, and firms offering professional and business services increased their payrolls by 51,000.

Health care providers added 24,000 net new jobs.

Some economists were concerned that severe winter weather last month might have slowed the labor market recovery. A major snowstorm hit the Northeast in mid-February, the same week that the Labor Department surveys households and employers for the jobs report.

Initial jobless claims rose last week to 320,000 — the highest level since May — and payroll firm Automatic Data Processing reported this week that private-sector job growth slowed to 212,000 in February from 250,000 the previous month.

Despite the winter weather, nearly 70 percent of respondents in a survey by the nonpartisan Pew Research Center said they believed the job situation had begun recovering. Less than half thought that was the case in September 2013.

But slow wage growth remained a big concern. About 30 percent of poll respondents said their personal finances had yet to recover from the Great Recession.

AFP Photo/Andrew Burton

Tags:

4 Comments

  1. Lynda Groom March 7, 2015

    What would the numbers be today if the opposition had spent just a small portion of their time working with the administration instead of spending six years obstructing everything that may have had a chance of improving the economy? Just asking.

    Reply
    1. Independent1 March 8, 2015

      unfortunately, that’s something we’ll never know: just how robust a recovery from the Great Recession that America may have experienced had the GOP made even a token effort of helping the recovery, instead of applying 24/7 obstructionism in an effort to sabotage our economy. Hopefully, historians will make the effort to record just how devious and treasonous the GOP has acted these past 6 plus years; as it’s tried every way it could think of to try and fulfill its promise of working to make Obama a one-term president.

      Fortunately, it failed miserably, and despite the GOP’s every mean spirited effort, the past 6 years have actually seen America accomplish more than was ever accomplished during the 28 disastrous years of the last 5 worthless GOP presidents. But as you point out, we’ll never really know just how much greater the past 6 years could have been!!

      Reply
  2. Independent1 March 8, 2015

    “But slow wage growth remained a big concern. About 30 percent of poll respondents said their personal finances had yet to recover from the Great Recession”

    One thing that’s clearly not helping wages recover is the GOP’s continuing efforts in many states to pass right-to-work (at the low wages I dictate) legislation in more and more states. The fact that adding 295,000 jobs didn’t help push up the average wages more than they did, is some evidence that those jobs were more likely at the low end of the pay scale, and maybe many of them were in those now right-to-work-for-low-pay states which are further pushing the demise of unions (note the article even here on the NM about Wisconsin just voting to further kill unions).

    Hopefully, now that WalMart has decided to up the minimum wage for its employees, it will spark a trend among similar large multi-national corporations like Target, McDonalds, Burger King and others to follow suit. This may be something that will drive up average wages in the coming months. And if Tom Wolf in PA can convince the new PA legislature to go along with his recent budget proposal, PA will be upping it’s min wage to $10.10/hr. Since the gutless GOP Congress isn’t willing to pass a national minimum wage increase on its own, maybe when enough states have taken it on their own to raise their minimum wage level enough about $7.25/hr, our gutless Congress will be shamed into following suit.

    Reply
  3. Independent1 March 8, 2015

    Just some statistics:

    -There has now been 53 straight months of positive jobs growth since October, 2010.
    -There have been 12 straight months of more than 200,000 jobs created/mo with about 3.3 million jobs created during those 12 months.
    -February’s 295,000 jobs continues the trend of the past 12 months creating more jobs than had been created in any 12 month period since back when Clinton was in office.

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.