Nonfarm Payrolls Rise 313K in
February vs. 200K Expected
March 9, 2018
Total nonfarm payroll employment
increased by 313,000 in February, and the unemployment rate was
unchanged at 4.1 percent, the U.S. Bureau of Labor Statistics reported
Investors expected nonfarm payroll
growth of 200,000 and the unemployment rate to decline one-tenth of a
percent to 4 percent.
U.S. Secretary of Labor Alexander
Acosta said, “Job growth was the strongest since President Trump’s
election, with 313,000 jobs created in the month of February. The
non-stop job creation since the election has yielded 2.9 million jobs.
For the fifth month in a row, the unemployment rate remained at 4.1%, a
17-year low. Goods-producing industries such as manufacturing, mining
and logging, and construction collectively had the highest
month-to-month growth since 1998. These were among many sectors
experiencing significant growth.
“President Trump’s tax reform continues to boost economic confidence
with more than 400 companies handing out bonuses, raises, or other
benefits to more than 4 million Americans. Today’s report shows that
average hourly earnings significantly increased in February and have
increased by 2.6% over the last year. We saw positive movement in the
labor force participation rate, and we would like to see that continue
over the coming months.”
Employment rose in construction,
retail trade, professional and business services, manufacturing,
financial activities, and mining.
Household Survey Data
In February, the unemployment rate was 4.1 percent for the fifth
consecutive month, and the number of unemployed persons was essentially
unchanged at 6.7 million.
Among the major worker groups, the
unemployment rate for Blacks declined to 6.9 percent in February, while
the jobless rates for adult men (3.7 percent), adult women (3.8
percent), teenagers (14.4 percent), Whites (3.7 percent), Asians (2.9
percent), and Hispanics (4.9 percent) showed little change.
The number of long-term unemployed (those jobless for 27 weeks or more)
was essentially unchanged at 1.4 million in February and accounted for
20.7 percent of the unemployed. Over the year, the number of long-term
unemployed was down by 369,000.
The civilian labor force rose by 806,000 in February. The labor force
participation rate increased by 0.3 percentage point over the month to
63.0 percent but changed little over the year.
In February, total employment, as measured by the household survey, rose
by 785,000. The employment-population ratio increased by 0.3 percentage
point to 60.4 percent in February, following 4 months of little change.
The number of persons employed part
time for economic reasons (sometimes referred to as involuntary
part-time workers) was little changed at 5.2 million in February.
These individuals, who would have
preferred full-time employment, were working part time because their
hours had been cut or because they were unable to find full-time jobs.
In February, 1.6 million persons were marginally attached to the labor
force, little different from a year earlier. (The data are not
seasonally adjusted.) These individuals were not in the labor force,
wanted and were available for work, and had looked for a job sometime in
the prior 12 months. They were not counted as unemployed because
they had not searched for work in the 4 weeks preceding the survey.
Among the marginally attached, there were 373,000 discouraged workers in
February, down by 149,000 from a year earlier. (The data are not
seasonally adjusted.) Discouraged workers are persons not currently
looking for work because they believe no jobs are available for them.
The remaining 1.2 million persons marginally attached to the labor force
in February had not searched for work for reasons such as school
Establishment Survey Data
Total nonfarm payroll employment rose by 313,000 in February. Job gains
occurred in construction, retail trade, professional and business
services, manufacturing, financial activities, and mining.
In February, construction employment increased by 61,000, with gains in
specialtytrade contractors (+38,000) and construction of buildings
(+16,000). Construction has added 185,000 jobs over the past 4 months.
Retail trade employment increased by 50,000 over the month. Within the
industry, employment rose in general merchandise stores (+18,000) and in
clothing and clothing accessories stores (+15,000). However, over the
past 4 months, which traditionally see the bulk of the holiday hiring
and layoff, employment in these industries has
changed little on net. Elsewhere in retail trade, building material and
garden supply stores added jobs over the month (+10,000).
Employment in professional and business services increased by 50,000 in
February and has risen by 495,000 over the year. Employment in temporary
help services edged up over the month (+27,000).
Manufacturing added 31,000 jobs in February. Within the industry,
employment rose in transportation equipment (+8,000), fabricated metal
products (+6,000), machinery (+6,000), and primary metals (+4,000). Over
the past year, manufacturing has added 224,000 jobs.
Financial activities added 28,000 jobs over the month, with gains in
credit intermediation and related activities (+8,000); insurance
carriers and related activities (+8,000); and securities, commodity
contracts, and investments (+5,000).
Over the year, financial activities
has added 143,000 jobs.
Employment in mining rose by 9,000 in February, with most of the
increase in support activities for mining (+7,000). Since a recent low
in October 2016, mining has added 69,000 jobs.
Employment in health care continued to trend up in February (+19,000),
with a gain of 9,000 in hospitals. Health care has added 290,000 jobs
over the past year.
Employment in other major industries, including wholesale trade,
transportation and warehousing, information, leisure and hospitality,
and government, showed little change over the month.
The average workweek for all employees on private nonfarm payrolls rose
by 0.1 hour to 34.5 hours in February. In manufacturing, the workweek
increased by 0.2 hour to 41.0 hours, while overtime edged up by 0.1 hour
to 3.6 hours. The average workweek for production and nonsupervisory
employees on private nonfarm payrolls increased
by 0.2 hour to 33.8 hours.
February, average hourly earnings for all employees on private nonfarm
payrolls rose by 4 cents to $26.75, following a 7-cent gain in January.
Over the year, average hourly earnings have increased by 68 cents, or
2.6 percent. Average hourly earnings of private-sector production and
nonsupervisory employees increased by 6
cents to $22.40 in February.
The change in total nonfarm payroll employment for December was revised
up from +160,000 to +175,000, and the change for January was revised up
from +200,000 to +239,000. With these revisions, employment gains in
December and January combined were 54,000 more than previously reported.
(Monthly revisions result from additional reports received from
businesses and government agencies since the last published estimates
and from the recalculation of seasonal factors.) After revisions, job
gains have averaged 242,000 over the last 3 months.