{"id":2097,"date":"2023-03-11T11:02:30","date_gmt":"2023-03-11T16:02:30","guid":{"rendered":"https:\/\/embarrdowns.com\/us-economy-surpasses-expectations-job-gains-remain-strong-despite-fed-rate-hikes\/"},"modified":"2023-03-11T11:02:30","modified_gmt":"2023-03-11T16:02:30","slug":"us-economy-surpasses-expectations-job-gains-remain-strong-despite-fed-rate-hikes","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/us-economy-surpasses-expectations-job-gains-remain-strong-despite-fed-rate-hikes\/","title":{"rendered":"US Economy Surpasses Expectations, Job Gains Remain Strong Despite Fed Rate Hikes"},"content":{"rendered":"

The US economy added 311,000 jobs in February, surpassing expectations and signaling a continued hot growth trend.[0]<\/a><\/sup> However, the unemployment rate rose to 3.6%, above the expectation for 3.4%, amid a tick higher in the labor force participation rate to 62.5%, its highest level since March 2020.[1]<\/a><\/sup> Average hourly earnings grew 0.2% month-on-month and were up 4.6% over the year before, however the monthly increase of 0.2% was below the 0.4% estimate.[2]<\/a><\/sup><\/p>\n

Leisure and hospitality led employment gains with an increase of 105,000, about in line with the six-month average of 91,000.[3]<\/a><\/sup> Retail saw a gain of 50,000, government added 46,000, and professional and business services saw an increase of 45,000.[4]<\/a><\/sup> The month saw a decrease of 25,000 jobs in the information sector, as well as a loss of 22,000 jobs in transportation and warehousing.[5]<\/a><\/sup><\/p>\n

The monthly job gains come on the heels of a surprisingly strong January jobs report in which 504,000 jobs were added to the economy.[6]<\/a><\/sup> The average workweek ticked down to 34.5 hours from a revised 34.6 hours, signaling a \u201csignificant overall drop\u201d in labor demand.[2]<\/a><\/sup> This more aggressive rate hike was a modification of their former policy to slow the pace of rate hikes which was evident in the fact that after four consecutive rate hikes of \u00be% last year in December the Fed reduced the magnitude of each rate hike just slightly to \u00bd%.[7]<\/a><\/sup><\/p>\n

The report shows the Fed is likely to continue to quickly raise interest rates, which will not be happy news for any consumer who is trying to borrow money soon.[8]<\/a><\/sup> On March 22, the Federal Reserve’s Open Market Committee will announce its next move on interest rates.[8]<\/a><\/sup> Powell informed the Senate Banking Committee this week that the Federal Reserve is ready to step up the rate of hikes, depending on how strong the job market is.[9]<\/a><\/sup> Those trying to obtain a mortgage, automobile loan, or other forms of borrowing will continue to feel the negative impact of additional interest rate increases.[9]<\/a><\/sup><\/p>\n

Overall, the labor market remains tight, with job creation decelerating in February but still stronger than expected despite Federal Reserve efforts to slow the economy and bring down inflation.[1]<\/a><\/sup> Though wage growth has slowed with an annualized rate of 3.6%, this rate is still in line with the 3.5% wage growth Fed chair Jerome Powell has said is consistent with the 2% inflation target.[2]<\/a><\/sup><\/p>\n

0. <\/span>“U.S. economy adds 311000 jobs in February despite unemployment rate jump” CBS News, 11 Mar. 2023, https:\/\/www.cbsnews.com\/video\/u-s-economy-adds-311000-jobs-in-february-despite-unemployment-rate-jump\/<\/a><\/a><\/p>\n

1. <\/span>“US economy added 311,000 jobs in February, exceeding expectations” NBC News, 10 Mar. 2023, https:\/\/www.nbcnews.com\/business\/business-news\/payrolls-rose-311000-february-expected-jobs-growth-stays-hot-rcna74329<\/a><\/a><\/p>\n

2. <\/span>“Jobs Report: Soft Wage Growth Offsets Strong Hiring” Investor’s Business Daily, 10 Mar. 2023, https:\/\/www.investors.com\/news\/economy\/jobs-report-soft-wage-growth-offsets-strong-hiring-sp-500-futures-rise\/<\/a><\/a><\/p>\n

3. <\/span>“Jobs report: US economy adds 311,000 jobs in February as labor market stays strong” Yahoo News, 10 Mar. 2023, https:\/\/news.yahoo.com\/february-jobs-report-march-10-2023-124602371.html<\/a><\/a><\/p>\n

4. <\/span>“Payrolls rose 311,000 in February, more than expected, showing solid growth” CNBC, 10 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/10\/jobs-report-february-2023.html<\/a><\/a><\/p>\n

5. <\/span>“Takeaways from the February jobs report” CNN, 11 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/11\/economy\/february-jobs-report-takeaways\/index.html<\/a><\/a><\/p>\n

6. <\/span>“The job market slowed last month, but it’s still too hot to ease inflation fears” NPR, 10 Mar. 2023, https:\/\/www.npr.org\/2023\/03\/10\/1162054252\/jobs-workers-labor-market-inflation-federal-reserve<\/a><\/a><\/p>\n

7. <\/span>“The jobs report revealed an unexpected outcome, but it’s not what you think” Kitco NEWS, 10 Mar. 2023, https:\/\/www.kitco.com\/commentaries\/2023-03-10\/The-jobs-report-revealed-an-unexpected-outcome-but-it-s-not-what-you-think.html<\/a><\/a><\/p>\n

8. <\/span>“February’s Jobs Report Brings More Confusing Economic News” TIME, 10 Mar. 2023, https:\/\/time.com\/6261754\/february-jobs-report<\/a><\/a><\/p>\n

9. <\/span>“Lopsided job-to-worker ratio continues; Michigan talent agency blames mismatched expectations” MLive.com, 10 Mar. 2023, https:\/\/www.mlive.com\/public-interest\/2023\/03\/lopsided-job-to-worker-ratio-continues-michigan-talent-agency-says-its-a-mismatch-of-expectations.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The US economy added 311,000 jobs in February, surpassing expectations and signaling a continued hot growth trend.[0]<\/a><\/sup> However, the unemployment rate rose to 3.6%, above the expectation for 3.4%, amid a tick higher in the labor force participation rate to 62.5%, its highest level since March 2020.[1]<\/a><\/sup> Average hourly earnings grew 0.2% month-on-month and were up 4.6% over the year before, however the monthly increase of 0.2% was below the 0.4% estimate.[2]<\/a><\/sup><\/p>\n

Leisure and hospitality led employment gains with an increase of 105,000, about in line with the six-month average of 91,000.[3]<\/a><\/sup> Retail saw a gain of 50,000, government added 46,000, and professional and business services saw an increase of 45,000.[4]<\/a><\/sup> The month saw a decrease of 25,000 jobs in the information sector, as well as a loss of 22,000 jobs in transportation and warehousing.[5]<\/a><\/sup><\/p>\n

The monthly job gains come on the heels of a surprisingly strong January jobs report in which 504,000 jobs were added to the economy.[6]<\/a><\/sup> The average workweek ticked down to 34.5 hours from a revised 34.6 hours, signaling a \u201csignificant overall drop\u201d in labor demand.[2]<\/a><\/sup> This more aggressive rate hike was a modification of their former policy to slow the pace of rate hikes which was evident in the fact that after four consecutive rate hikes of \u00be% last year in December the Fed reduced the magnitude of each rate hike just slightly to \u00bd%.[7]<\/a><\/sup><\/p>\n

The report shows the Fed is likely to continue to quickly raise interest rates, which will not be happy news for any consumer who is trying to borrow money soon.[8]<\/a><\/sup> On March 22, the Federal Reserve’s Open Market Committee will announce its next move on interest rates.[8]<\/a><\/sup> Powell informed the Senate Banking Committee this week that the Federal Reserve is ready to step up the rate of hikes, depending on how strong the job market is.[9]<\/a><\/sup> Those trying to obtain a mortgage, automobile loan, or other forms of borrowing will continue to feel the negative impact of additional interest rate increases.[9]<\/a><\/sup><\/p>\n

Overall, the labor market remains tight, with job creation decelerating in February but still stronger than expected despite Federal Reserve efforts to slow the economy and bring down inflation.[1]<\/a><\/sup> Though wage growth has slowed with an annualized rate of 3.6%, this rate is still in line with the 3.5% wage growth Fed chair Jerome Powell has said is consistent with the 2% inflation target.[2]<\/a><\/sup><\/p>\n

0. <\/span>“U.S. economy adds 311000 jobs in February despite unemployment rate jump” CBS News, 11 Mar. 2023, https:\/\/www.cbsnews.com\/video\/u-s-economy-adds-311000-jobs-in-february-despite-unemployment-rate-jump\/<\/a><\/a><\/p>\n

1. <\/span>“US economy added 311,000 jobs in February, exceeding expectations” NBC News, 10 Mar. 2023, https:\/\/www.nbcnews.com\/business\/business-news\/payrolls-rose-311000-february-expected-jobs-growth-stays-hot-rcna74329<\/a><\/a><\/p>\n

2. <\/span>“Jobs Report: Soft Wage Growth Offsets Strong Hiring” Investor’s Business Daily, 10 Mar. 2023, https:\/\/www.investors.com\/news\/economy\/jobs-report-soft-wage-growth-offsets-strong-hiring-sp-500-futures-rise\/<\/a><\/a><\/p>\n

3. <\/span>“Jobs report: US economy adds 311,000 jobs in February as labor market stays strong” Yahoo News, 10 Mar. 2023, https:\/\/news.yahoo.com\/february-jobs-report-march-10-2023-124602371.html<\/a><\/a><\/p>\n

4. <\/span>“Payrolls rose 311,000 in February, more than expected, showing solid growth” CNBC, 10 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/10\/jobs-report-february-2023.html<\/a><\/a><\/p>\n

5. <\/span>“Takeaways from the February jobs report” CNN, 11 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/11\/economy\/february-jobs-report-takeaways\/index.html<\/a><\/a><\/p>\n

6. <\/span>“The job market slowed last month, but it’s still too hot to ease inflation fears” NPR, 10 Mar. 2023, https:\/\/www.npr.org\/2023\/03\/10\/1162054252\/jobs-workers-labor-market-inflation-federal-reserve<\/a><\/a><\/p>\n

7. <\/span>“The jobs report revealed an unexpected outcome, but it’s not what you think” Kitco NEWS, 10 Mar. 2023, https:\/\/www.kitco.com\/commentaries\/2023-03-10\/The-jobs-report-revealed-an-unexpected-outcome-but-it-s-not-what-you-think.html<\/a><\/a><\/p>\n

8. <\/span>“February’s Jobs Report Brings More Confusing Economic News” TIME, 10 Mar. 2023, https:\/\/time.com\/6261754\/february-jobs-report<\/a><\/a><\/p>\n

9. <\/span>“Lopsided job-to-worker ratio continues; Michigan talent agency blames mismatched expectations” MLive.com, 10 Mar. 2023, https:\/\/www.mlive.com\/public-interest\/2023\/03\/lopsided-job-to-worker-ratio-continues-michigan-talent-agency-says-its-a-mismatch-of-expectations.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2096,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2097"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2097"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2097\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2096"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}