“Non-Farm Employment in the US Exceeds Market Expectations While Unemployment Rate Rises.
According to the statement by the US Bureau of Labor Statistics, non-farm employment increased by 311,000 in February. The market expectation was that there would be an increase of 225,000.
The non-farm employment figures for December 2022 were revised from 260,000 to 239,000, and for January 2023 from 517,000 to 504,000.
Private sector employment exceeded market expectations of 210,000 with an increase of 265,000. Public sector employment was announced to have increased by 46,000.
Employment decreased by 4,000 in the manufacturing sector, increased by 24,000 in the construction sector, and showed no change in the mining sector.
-Unemployment Rate Increased-
In the same month, the unemployment rate rose from 3.4% to 3.6%. The market expectation was that the unemployment rate would remain at 3.4%.
The broader measure of unemployment, known as U-6, rose from 6.6% to 6.8%.
The US Federal Reserve projected an unemployment rate expectation of 4.6% for this year and next year, and 4.5% for 2025 in its latest projection report. The Fed’s long-term unemployment rate expectation is at 4.0%. The Fed’s new year’s first projections will be announced with the results of the FOMC meeting on March 22.
Hourly earnings showed a monthly increase of 0.24% and an annual increase of 4.62%. Analysts expected a monthly increase of 0.4% and an annual increase of 4.8%. The average workweek decreased by 0.1 hours to 34.5 hours.
The labor force participation rate in the country increased from 62.4% to 62.5%.”