Payrolls Fall 36,000; Jobless Rate Stays 9.7%

The U.S. February employment report showed continued job losses.

While weather-related weakness was seen in lower hours and earnings, and in some places in fewer persons on payroll, the Bureau of Labor Statistics said there were “too many unknowns” to quantify the effects and that and March data will probably rebound. 

Analysts had feared the widespread and major snowstorms in the month would also take a toll on payroll figures, which were calculated in the weeks of the East Coast blizzards.

February payrolls declined 36,000, fewer than the 50,000 lost jobs expected by economists polled by Thomson Reuters. January-December revisions totaled plus-35,000.

Private payrolls fell 18,000 so there is not yet forward momentum in hiring. The local government education sector lost 24,100 jobs, and the federal sector — excluding the Postal Service — added a mere 16,100.

The BLS said the February report included Census hiring totaling 15,000.

February payrolls also included a decrease in construction jobs of 64,000, manufacturing up 1,000, retail down 400, information with a 18,000 decrease, finance at a 10,000 loss, and temporary help at a 47,500 gain.

Average hourly earnings for all workers gained 0.1% for a 1.9% increase over the year.

Hours and earnings were probably hurt by the brutal weather and suggest slower production and incomes. These should quickly turn higher.

The average workweek slipped to 33.8 hours from 33.9 hours in January.

The bottom line is that the labor market is on a three-month improvement trend that suggests the economy is doing ­better.

— Market News International

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