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Todays Unemployment Report: not bad or good!

March 6, 2015

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Nonfarm payrolls added 295,000 jobs in February after adding a downwardly revised 239,000 (from 257,000) in January. The Briefing.com consensus expected nonfarm payrolls to increase by 240,000 new jobs. The unemployment rate fell to 5.5% in February from 5.7% in January. The consensus expected the unemployment rate to fall to 5.6%.

Key Factors
It is difficult to label this report as good. Headline payrolls topped expectation, which is obviously a good result. However, average hourly earnings increased marginally (0.1%) after growing by 0.5% in January. Lackluster wage growth combined with the improvement in payrolls led to a 0.4% increase in aggregate wages. To put that in perspective, even after the downward revision to the January payroll numbers, aggregate income increased a much stronger 0.7% last month.

Since consumption growth, and economic growth in general, follow the trend in income, the February employment results were decidedly worse than January even though this month’s headline payroll numbers far exceeded both expectations and the prior level. That is not to say that the employment data should be labeled as bad. It’s just not nearly as strong as the headline suggested.

The decline in the unemployment rate was completely due to another exodus in labor market participation. The participation rate dropped to 62.8% in February from 62.9% in January. If the labor force participation rate remained at January levels, the unemployment rate would have remained at 5.7%.

Big Picture
The February employment data was not bad, but not necessarily good either.

Read more: http://briefing.com/Investor/Calendars/Economic/Releases/employ.htm#ixzz3TdMviDx5

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4 Replies to “Todays Unemployment Report: not bad or good!”

  1. Good for me cause the Rut backed away from the upper leg of the (virtual) Iron Condor I have on it.

  2. Avatar fidel serrano says:


    the Personal Spending m/m from May 30, 2014 are below the forecast

    Construction Spending m/m from September 2014 are below the forecast

    Factory Orders m/m from September 2014 are below the forecast

    Building Permits from September 2014 are below the forecast

    Existing Home Sales from december 2014 are below the forecast

    Core Durable Goods Orders m/m from Aug 26, 2014 are below the forecast

    also the unemployment is in the same before the crash 2008 , but now all the people that in 2008 have 15 or 20 year experienced earning $30 per hourly in the 2008 they loose the jobs and now are working maybe a minimun salary or much less that they have in 2008 + plus the inflation , the cost of living is more , and now America have trillions dollars in debt.

  3. Avatar fidel serrano says:

    P.D. don’t worried i live in Puerto Rico , and the economy is much, much worse. impossible to leave

  4. Avatar fidel serrano says:

    live , sorry my bad English

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