242,000 Americans Find Jobs
World Economy

242,000 Americans Find Jobs

US employment gains surged in February, the clearest sign yet of labor market strength that could further ease fears the economy was heading into recession and allow the Federal Reserve to gradually raise interest rates this year.
Nonfarm payrolls increased by 242,000 jobs last month, the Labor Department said on Friday. The unemployment rate held at an eight-year low of 4.9% even as more people piled into the labor market.
“This is the best news the Fed could have expected going into the meeting. With jobs bouncing back, you can be sure that rate hikes are just around the corner,” said to Reuters, Chris Rupkey, chief economist at MUFG Union Bank in New York.
The economy added 30,000 more jobs in December and January than previously reported. The only blemish in the report was a three-cent drop in average hourly earnings, but that was mostly because of a calendar quirk. The average length of the workweek also fell last month.
Economists had forecast employment increasing by 190,000 last month and the jobless rate holding steady.
The employment report added to data such as consumer and business spending in suggesting the economy had regained momentum after growth slowed to a 1.0% annual rate in the fourth quarter. Growth estimates for the first quarter are around a 2.5% rate.
Fears of a recession in the wake of poor economic reports in December and slowing growth in China sparked a global stock market rout at the start of the year, causing financial market conditions to tighten.
Financial markets have priced out bets of a rate rise at the Fed’s March 15-16 policy meeting and see a roughly 50% chance of a hike at the September and November meetings, according to CME FedWatch. Economists, however, believe the strong jobs market and improved growth outlook, together with signs that inflation is creeping up, could prompt the Fed to lift borrowing costs in June.
The Fed raised its key overnight interest rate in December for the first time in nearly a decade.

Short URL : https://goo.gl/GcH2AW
  1. https://goo.gl/WHXzzM
  • https://goo.gl/X2KCo8
  • https://goo.gl/Oj4j8J
  • https://goo.gl/sny8bu
  • https://goo.gl/nHG8Bo

You can also read ...

Even though the US tariffs on their own may have a limited impact, global economic growth will slow should US trigger a trade war with  China or the European Union.
The volume of global trade grew faster than the world economy...
Since China’s entry into the World Trade Organization in 2001, it has become the most formidable  economic competitor the United States had even seen.
The US national debt exceeded $21 trillion for the first time...
S. Arabia Among World’s Worst Performing Property Markets
Saudi Arabia’s real estate market continued to be one of the...
OECD Finds No Consensus on Interim E-Commerce Taxes
The Organization for Economic Cooperation and Development’s...
Merkel Says Trying to Boost Domestic Demand
Germany is trying to stimulate domestic demand to offset...
Greece Looking Economically Vibrant on Road to Recovery
It’s nearly springtime in Athens: street trees are heavy with...
Gaza growth fell from 8% in 2016  to a mere 0.5% in 2017.
Gaza has seen conditions steadily deteriorate over the last...
2 Japan Airlines Plan Merger
Japanese airline group ANA Holdings has decided to consolidate...