Unemployment Rate Inches Up
Jobs Growth
Pulling a complete reversal after last month’s spike in hiring, the labor market contracted in February, with a loss of 92,000 jobs.
Top Industries
Breaking a long-held record of month-over-month growth, employment in health care decreased in February, primarily reflecting now-resolved strike activity in California. Employment in information services and the federal government continued to trend down.
Unemployment
The unemployment rate moved up from 4.3% in January to 4.4% in February.
Wages
Average hourly earnings again rose by 0.4% this past month, contributing to an increase of 3.8% over the past 12 months.
Work Week
There was no change in weekly work hours from January to February, with the average work week staying steady at 34.3 hours.
Temporary Job Trends
Paralleling overall labor market direction in the past month, temporary employment dropped back by 6,500 jobs in February.
What Does It All Mean?
Based on the latest employment report, the U.S. labor market appears to be moving in the wrong direction. Disappointing job losses in February, followed by downward revisions of figures in recent months, point to a softening economy, with unemployment shifting slightly higher. While the most acute hit was felt by the healthcare sector, a usually reliable indicator of growth, losses were spread across multiple sectors of the market. Even taking in possible (but less than powerful) impacts from strikes and severe winter weather, the overall picture remains gloomy. Compensation offered the single bright spot, with small gains outpacing inflation for America’s workforce.
Given new worries relating to the situation in the Middle East, rising oil prices and a somewhat volatile stock market, confidence in the possibility of lower interest rates is evaporating. So the question becomes, is this a temporary blip on the radar or a burgeoning trend?
Perhaps the best advice for employers in such an unsettled job market is to take a momentary step back from macro economic issues. Put a laser focus on the near-
term needs of the business, taking into account client demand, operational priorities and workforce capabilities. Rather than spending a lot of time contemplating possibilities beyond your influence, take actions on the decision points under your control, ones that offer more immediate payoffs for key constituents.
Whichever way the economy breaks, it is best to keep a firm hand on the power levers closest to – and most valuable – your own organization, especially customers
and employees.
Sources: Bureau of Labor Statistics, Staffing Industry Analysts, CNBC, FOX Business, NBC News, Reuters, The New York Times, Fortune.
