Posted on 03/08/24
| News Source: FOX Business
U.S. employers added 275,000 jobs in February and the unemployment rate ticked higher, the Labor Department reported on Friday.
Economists surveyed by LSEG expected a gain of 200,000 jobs and the unemployment rate to hold steady at 3.7%.
Growth was driven by the hiring of health care and government employees, along with food services. On the flip side, the manufacturing sector cut 4,000 positions.
Average hourly earnings, a key measure of inflation, increased 0.1% for the month and climbed 4.3% from the same time one year ago. Strong job growth combined with rising wages is fueling inflation, according to some economists.
The data may not be enough for the Federal Reserve, which is looking for inflation and the economy to slow, to begin its rate-cutting cycle, which would also come heading into the 2024 presidential election.
"After a series of exceptionally strong labor market reports that threatened to disrupt the expected easing of monetary policy, this data serves as a warning to those concerned about the inflationary pressure on the U.S. economy and the potential impact on interest rates," said Glassdoor's chief economist Aaron Terrazas.