Solid Job Growth in February
During February, employment numbers persisted despite higher interest rates. Although the unemployment rate rose, the labor force participation rate remained stable. February’s employment data indicates the labor market’s enduring strength but also hints at potential deceleration.
According to Eye on Housing, total nonfarm payroll employment increased by 275,000 in February, greater than the downwardly revised increase of 229,000 jobs in January, as reported in the Employment Situation Summary. There were significant downward revisions to the initial reported job gains for December and January. The monthly change in total nonfarm payroll employment for December was revised down by 43,000, from +333,000 to +290,000, while the change for January was revised down by 124,000 from +353,000 to +229,000. Combined, the revisions were 167,000 lower than the original estimates. Despite restrictive monetary policy, about 6.9 million jobs have been created since March 2022, when the Fed enacted the first interest rate hike of this cycle.
In February, the unemployment rate increased by 0.2 percentage points to 3.9%, after holding at 3.7% for three straight months. This marks the highest level since January 2022. The number of unemployed persons rose by 334,000 to 6.5 million, while the number of employed persons declined by 184,000.
