Tightening U.S. Job Market Keeps Hope Alive Wages Will Grow (1)
by
Bloomberg News
Americans are joining the labor force in droves and finding work, casting a vote of confidence in the world’s...
Americans are joining the labor force in droves and finding work, casting a vote of confidence in the world’s largest economy even as wages continue to lag behind.
Payrolls grew by 242,000 workers in February, exceeding most economists’ forecasts, figures from the Labor Department’s survey of U.S. employers showed Friday in Washington. The workforce is growing at the fastest pace in more than a decade, the share of the population with a job is the highest since 2009, and the 4.9 percent unemployment rate matched an eight-year low, according to the agency’s separate canvass of households.
The surge in hiring is the best evidence yet that companies are looking past the turmoil in financial markets and weak global growth as American consumers sustain the economic expansion. With the figures indicating there is little spillover from the market Volatility that has caused Federal Reserve officials to adopt a more cautious tone, it becomes more likely that policy makers will raise rates again after their next meeting in March.
“This economy is extremely resilient,” said Ward McCarthy, chief financial economist at Jefferies LLC in New York. The Fed will pause in March, but if economic reports continue to come in strong, officials will begin to telegraph a hike for the June policy meeting, he said. “They do want to continue to move away from zero” interest rates.
Presidential Candidates
The health of the labor market will play a role in deciding the race for the White House. While leading Democratic presidential candidate Hillary Clinton can point to economic progress under her party’s leadership, Republican front-runner Donald Trump may steer voters to focus on limited wage growth and companies moving operations overseas because of high corporate tax rates.
There are “fear-mongerers and fact-deniers out there who want people to believe there’s been no job creation to speak of,” Labor Secretary Tom Perez said in a phone interview. But “American businesses are continuing to create jobs and move the country forward, and today’s jobs numbers are proof of that.”
The biggest blemish in the February jobs report was a 0.1 percent drop in average hourly wages. The decline followed a 0.5 percent gain the prior month that had raised hopes of a long-awaited pickup in pay. While the unexpectedly weak reading could have been due to a calendar quirk, it still called into question how quickly workers would benefit from a tightening job market.
Household Survey
The report’s household survey, from which the jobless rate is calculated, did however signal employees may soon get the upper hand in wage negotiations as the pool of those available to work continues to shrink.
The share of the working-age population with a job climbed to 59.8 percent, the highest since April 2009. As unemployed people see family and friends getting hired, it boosts confidence in their own ability to find work. The participation rate, which measures the share of working-age people who are either employed or looking for work, has increased for three straight months, the first time that’s happened since 2006.
Other aspects of the household survey, which can often be volatile, have also been upbeat recently. The labor force has grown by 1 percent over the past three months, the biggest gain over a similar period since early 2000. And most of those people are finding work, with gains in employment averaging 543,000 a month since since December, also the most in 16 years.
“We got a very solid household survey,” said Michael Feroli, JPMorgan Chase & Co.’s chief U.S. economist in New York. “If these slack measures continue to improve, then we gain confidence that over time, we’ll see a return of bigger wage gains.”
(Updates with comments from Labor Secretary in sixth paragraph.)
--With assistance from Craig Torres To contact the reporters on this story: Carlos Torres in Washington at ctorres2@bloomberg.net, Shobhana Chandra in Washington at schandra1@bloomberg.net. To contact the editors responsible for this story: Carlos Torres at ctorres2@bloomberg.net, Vince Golle, Brendan Murray
Americans are joining the labor force in droves and finding work, casting a vote of confidence in the world’s largest economy even as wages continue to lag behind.
Payrolls grew by 242,000 workers in February, exceeding most economists’ forecasts, figures from the Labor Department’s survey of U.S. employers showed Friday in Washington. The workforce is growing at the fastest pace in more than a decade, the share of the population with a job is the highest since 2009, and the 4.9 percent unemployment rate matched an eight-year low, according to the agency’s separate canvass of households.
The surge in hiring is the best evidence yet that companies are looking past the turmoil in financial markets and weak global growth as American consumers sustain the economic expansion. With the figures indicating there is little spillover from the market Volatility that has caused Federal Reserve officials to adopt a more cautious tone, it becomes more likely that policy makers will raise rates again after their next meeting in March.
“This economy is extremely resilient,” said Ward McCarthy, chief financial economist at Jefferies LLC in New York. The Fed will pause in March, but if economic reports continue to come in strong, officials will begin to telegraph a hike for the June policy meeting, he said. “They do want to continue to move away from zero” interest rates.
Presidential Candidates
The health of the labor market will play a role in deciding the race for the White House. While leading Democratic presidential candidate Hillary Clinton can point to economic progress under her party’s leadership, Republican front-runner Donald Trump may steer voters to focus on limited wage growth and companies moving operations overseas because of high corporate tax rates.
There are “fear-mongerers and fact-deniers out there who want people to believe there’s been no job creation to speak of,” Labor Secretary Tom Perez said in a phone interview. But “American businesses are continuing to create jobs and move the country forward, and today’s jobs numbers are proof of that.”
The biggest blemish in the February jobs report was a 0.1 percent drop in average hourly wages. The decline followed a 0.5 percent gain the prior month that had raised hopes of a long-awaited pickup in pay. While the unexpectedly weak reading could have been due to a calendar quirk, it still called into question how quickly workers would benefit from a tightening job market.
Household Survey
The report’s household survey, from which the jobless rate is calculated, did however signal employees may soon get the upper hand in wage negotiations as the pool of those available to work continues to shrink.
The share of the working-age population with a job climbed to 59.8 percent, the highest since April 2009. As unemployed people see family and friends getting hired, it boosts confidence in their own ability to find work. The participation rate, which measures the share of working-age people who are either employed or looking for work, has increased for three straight months, the first time that’s happened since 2006.
Other aspects of the household survey, which can often be volatile, have also been upbeat recently. The labor force has grown by 1 percent over the past three months, the biggest gain over a similar period since early 2000. And most of those people are finding work, with gains in employment averaging 543,000 a month since since December, also the most in 16 years.
“We got a very solid household survey,” said Michael Feroli, JPMorgan Chase & Co.’s chief U.S. economist in New York. “If these slack measures continue to improve, then we gain confidence that over time, we’ll see a return of bigger wage gains.”
(Updates with comments from Labor Secretary in sixth paragraph.)
--With assistance from Craig Torres To contact the reporters on this story: Carlos Torres in Washington at ctorres2@bloomberg.net, Shobhana Chandra in Washington at schandra1@bloomberg.net. To contact the editors responsible for this story: Carlos Torres at ctorres2@bloomberg.net, Vince Golle, Brendan Murray
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔