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The Labor Market Report is derived from two monthly surveys from The Bureau of Labor Statistics (BLS) that measure labor market trends: The Current Employment Statistics (CES) survey and The Current Population Survey (CPS).
The U.S. Economy Gained 275,000 Jobs in February
Key Takeaway: Job creation finished close to the Geographic Solutions, Inc. expectations of 258,000 jobs and well above the WSJ Survey expectations of 198,000 jobs.
THE EMPLOYMENT LANDSCAPE According to the monthly Bureau of Labor Statistics (BLS) report, employment in the U.S. in February 2024 gained 275,000 additional jobs, while the unemployment rate increased to 3.9%. Despite downward revisions in December and January, employment ended February with the best 3-month performance since the April-June 2023 period.
JOB CREATION Job creation was strongest in the Private Education & Health Services (+85,000), Leisure & Hospitality (+58,000), and Government (+52,000) sectors, while no sectors saw significant job loss. Leisure & Hospitality employment is 0.1% below its total in February 2020. It is on track to surpass its pre-pandemic peak next month and would be the last major sector to achieve this.
Bureau of Labor Statistics
UNEMPLOYMENT LANDSCAPE The U-6 unemployment rate nudged up to 7.3% in February from 7.2% in January. The rise in both types of unemployment rates (U-3 & U-6) with an unchanged labor force participation rate sends a different signal from the employment numbers. It shows a weakening labor market.
The U-6 unemployment rate counts discouraged workers who are no longer actively seeking work (and therefore no longer in the labor force) and those that have settled for part-time employment but desire a full-time job.
REAL WAGES Real wages have consistently increased since September 2023. Inflation data will not be released until next week but if prices rose similarly to the previous four months, real wages declined in February.