MNI BRIEF: US Hiring Stronger Than Expected; Jobless Rate 3.9%
Employers added 275,000 jobs in February but hiring in previous months was revised substantially lower and wage growth slowed.
U.S. employers added 275,000 jobs in February, more than Wall Street's estimate of 200,000, but payrolls were revised down a combined 167,000 for January and December and the unemployment rate rose two tenths to 3.9%, compared to expectations of no change, the Bureau of Labor Statistics said Friday.
The solid labor market data should keep the Federal Reserve comfortable holding rates at 5.25%-5.5% until it gains confidence that inflation is falling steadily to 2%. (See MNI INTERVIEW: No Fed Cuts Until H2, Ex-KC Fed's Hoenig Says)
Average hourly earnings rose just 0.145% last month after a 0.5% gain in January, bringing the year-on-year pace down a tenth to 4.3%. The labor force participation rate remained at 62.5% for the third straight month and the employment-to-population ratio ticked down a tenth to 60.1%, where it was in December. Futures traders added to bets the Fed will cut rates this year, pricing in 100 bps of cuts compared to 92 bps ahead of the jobs report.