According to the U.S. Labor Department’s report on Friday, U.S. employers added 275,000 jobs in February, which is the highest level in two years. The unemployment rate also increased to 3.9 percent during the same month.
The report indicated that job gains were seen in various sectors including health care, government, food services and drinking places, social assistance, and transportation and warehousing.
In February, the unemployment rate rose by 0.2 percentage points to 3.9 percent, with the number of unemployed individuals increasing by 334,000 to 6.5 million. Comparatively, a year prior, the unemployment rate was 3.6 percent, with 6.0 million unemployed individuals.
Total nonfarm payroll employment also saw a rise of 275,000 in February, which exceeded the average monthly gain of 230,000 seen over the previous 12 months.
Economists Sarah House and Michael Pugliese from Wells Fargo Securities mentioned in their analysis that despite the strong hiring at the beginning of the year, there were signs of moderation in the employment situation.
They highlighted material downward revisions in job growth for the prior two months, and the fact that the unemployment rate had reached its highest level in over two years.
The report also revealed downward revisions to job growth, with December’s job growth being revised down by 43,000 to 290,000, and January’s growth being revised down by 124,000 to 229,000. This resulted in a combined 167,000 fewer jobs reported for December and January.
Sarah House and Michael Pugliese further noted that there were continued declines in temporary help workers, an increase in permanent job losers, and a shift towards part-time work, which all indicate a potential weakening demand for workers in the future.
