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Job gains of 175K beat forecasts; UE rate up to 6.7%

  • February Nonfarm Payrolls: +175K vs. consensus +154K, +129K previous (revised from 113K).
  • Unemployment rate: 6.7% vs. 6.6% consensus, 6.6% previous.
Comments (27)
  • permanent
    , contributor
    Comments (135) | Send Message
     
    Pretty good number at first glance especially with the weather conditions not being favorable.
    What I like most:
    In February, average hourly earnings for all employees on private nonfarm
    payrolls rose by 9 cents to $24.31. Over the year, average hourly earnings
    have risen by 52 cents, or 2.2 percent. In February, average hourly
    earnings of private-sector production and nonsupervisory employees increased
    by 9 cents to $20.50.
    7 Mar, 08:39 AM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3044) | Send Message
     
    For the markets, an almost perfect report. Larger than expected payroll gains, suggest economic strength, while the increase in the unemploymnet rate offers wider berth to conduct monetary policy and more room to reduce the rate of taper should circumstances warrant. And the increase in hourly earnings is the icing on the cake.
    7 Mar, 08:56 AM Reply Like
  • AZ Desert Trader
    , contributor
    Comments (240) | Send Message
     
    It's all about the spin.

     

    Headline from CNN: Economy added 175,000 jobs in February, more than the 150,000 experts had expected. Jobless rate rose slightly to 6.7% from 6.6%.

     

    Fox News: FEBRUARY JOBLESS RATE CLIMBS TO 6.7 PERCENT DESPITE HIGHER-THAN-EXPECTED INCREASE IN JOBS GROWTH
    7 Mar, 08:58 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (4008) | Send Message
     
    AZ

     

    :) - that comparison is impressive.

     

    I know it's been asked before, but how do jobs go up, and UE goes up too?
    7 Mar, 09:03 AM Reply Like
  • AZ Desert Trader
    , contributor
    Comments (240) | Send Message
     
    Land,

     

    I have no idea and I'm not endorsing any particular position. I just think it's interesting how different media outlets spin things.
    7 Mar, 09:18 AM Reply Like
  • Jolly_Rancher
    , contributor
    Comments (550) | Send Message
     
    Maybe more people entering labor force and not finding a job.
    7 Mar, 09:21 AM Reply Like
  • wigit5
    , contributor
    Comments (4058) | Send Message
     
    What Jolly said, a lot of the people who gave up looking for jobs see people getting jobs and start looking again hence the participation rate goes up causing UE to go up...

     

    it's a really crappy number and I'm still not sure why the government uses it... it tells us very little in the grand scheme of the economy...
    7 Mar, 10:50 AM Reply Like
  • Nathaniel Munson
    , contributor
    Comments (70) | Send Message
     
    Could be more people are looking for work now. If people aren't looking for work, they're not considered part of the work force and therefore the unemployment number doesn't count them. That's also a good sign though, it means people think they have a chance again. The problem of people dropping out of the workforce is one of the reasons the Federal Reserve has moved away from using the unemployment rate as its major indicator of how the economy is doing.
    7 Mar, 09:09 AM Reply Like
  • swanny440
    , contributor
    Comments (6) | Send Message
     
    @Milk:

     

    Because more people are looking for jobs. A contributing factor could be the expiration of Unemployment Compensation has left many with no choice.

     

    Agree with @permanent -- probably the most impressive part of the report is the increase in hourly wages, the highest in almost 2 yrs.

     

    @AZ -- you took the words right out of my (proverbial) mouth!
    7 Mar, 09:10 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (4008) | Send Message
     
    Thanks Nathaniel
    7 Mar, 09:10 AM Reply Like
  • Nathaniel Munson
    , contributor
    Comments (70) | Send Message
     
    No problem.
    7 Mar, 09:23 AM Reply Like
  • fredcobbearthlinknet
    , contributor
    Comments (2) | Send Message
     
    I agree swanny440 the unemployment numbers go up when you stop the seemingly endless unemployment benefits and people realize you have to start looking for a means of support other than Big Gov.
    7 Mar, 09:29 AM Reply Like
  • minecanary
    , contributor
    Comments (451) | Send Message
     
    Or it could be that they put out whatever numbers they want...so they can continue to do whatever they want - even if it's not working.
    7 Mar, 09:16 AM Reply Like
  • rubber duck
    , contributor
    Comments (194) | Send Message
     
    I'm sure they'll revise the numbers down next month. Anyone else see the pattern? Put out a bigger number, juice the markets, quietly revise down next month.
    7 Mar, 10:03 AM Reply Like
  • Tatertot
    , contributor
    Comments (144) | Send Message
     
    You're 100% wrong on this. On employment numbers the trend has been to revise numbers higher, and has been for quite some time now. Seriously, go back on seekingalpha and look at the jobs report announcements. They're usually increases in the revisions.
    7 Mar, 06:01 PM Reply Like
  • d.chavo
    , contributor
    Comments (39) | Send Message
     
    This number is a sham. The last two monthly reports have been revised down and surely this one will two. This one had to beat the low number of 150K they were expecting. This justifies the tapering. Anyway, sooner or later the truth will come out and the world will see the U.S. economy is slowing down fast. Look at the classifieds and you will realize there are not enough jobs out there and most are worthless. No one wants a low paying fast food or retail job. CNBC should be ashamed of itself for that headline they wrote.
    7 Mar, 10:10 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11110) | Send Message
     
    Sadly you can't blame CNBC. It's our government statistics. In reality, almost all the employment reports are statistically meaningless if you consider their margin of error. They simply omit it and the corrections are often even bigger than the margin of error.

     

    Remember 2008. They revised almost all their statistics for 12 months and announced the recession started over 6 months before anyone was aware of it. It most likely will be that way this time as well.

     

    What I can say is the market top is obvious. Massive locking in in corporate borrowing, buyouts and mergers with inflated shares buying growth and even more inflated shares, and a flood of money coming from EM where the contraction is already obvious. Give it 12 months at most and the downturn will be upon us.

     

    This love fest of silly numbers is made for the blissfully ignorant and the ones who wish to take advantage of them.
    7 Mar, 12:47 PM Reply Like
  • Tatertot
    , contributor
    Comments (144) | Send Message
     
    What you said doesn't make any sense. They revised previous months higher. Seriously, just scroll up the page and look at the announcement.
    7 Mar, 06:02 PM Reply Like
  • bbro
    , contributor
    Comments (9605) | Send Message
     
    "Look at the classifieds and you will realize there are not enough jobs out there and most are worthless."

     

    Classifieds???
    7 Mar, 10:26 AM Reply Like
  • filipo
    , contributor
    Comments (3283) | Send Message
     
    Quality of the kind of jobs seems matter for discussion:
    http://bit.ly/O1YHyu-
    7 Mar, 10:40 AM Reply Like
  • mrdirt
    , contributor
    Comments (482) | Send Message
     
    Good number, must have hired 24k people to shovel snow in February.
    Unfortunately, as has been the case for the past several months, well over half the total job gains in February were in industries that pay the least.

     

    To wit:

     

    Education and Health: +33K
    Leisure and Hospitality: +25K
    Temp Help Services: +24K
    Government: +13K
    Taken together, these 95K jobs amount to well over half of all job gains in the past month. It goes without saying that there is little wage growth of note one can hope for in these sectors.

     

    Also of note: the high-paying information sector lost a whopping 16K jobs in February, following 8K losses the month before, while only 9K financial jobs were added this month (offsetting the 2K drop last month).http://bit.ly/O1YHyu-
    7 Mar, 11:00 AM Reply Like
  • minecanary
    , contributor
    Comments (451) | Send Message
     
    Alas, here in Ct., the stronghold of unions, illegal immigrants, and blowhard politicians eager to court them - gov't and education jobs have to be considered among the cream of the crop. They've stolen the banker's line that we have to pay more to attract talent and use it to ratchet salaries up 3-4% a year in a never ending circle jerk.
    7 Mar, 01:27 PM Reply Like
  • quabbin
    , contributor
    Comments (127) | Send Message
     
    mrdirt....There are lots of engineering positions being advertised but what is strange is that many of these positions have been open for 6 months or more. I find it hard to believe the talent pool is that dry.
    7 Mar, 04:45 PM Reply Like
  • optionsexpert
    , contributor
    Comments (294) | Send Message
     
    There is an error on the Breaking News post "Stocks give back early gain; tech turns down" .. links to streetinsider.com
    7 Mar, 11:42 AM Reply Like
  • Petrarch
    , contributor
    Comments (722) | Send Message
     
    this is media hype and a way to drive ratings
    these first look numbers are meaningless
    they are plus/minus 100,000
    ue rate move of 10 bps is meaningless
    the more impotant number was out yesterday
    do you know which one?
    7 Mar, 11:56 AM Reply Like
  • ilikemoney
    , contributor
    Comments (16) | Send Message
     
    The more telling number is the employment rate, not the unemployment rate. Since the beginning of 2008 the job participation rate has been steadily freefalling. No change in that trajectory.

     

    http://1.usa.gov/pSpjQo
    7 Mar, 12:05 PM Reply Like
  • Bigisbetter
    , contributor
    Comments (548) | Send Message
     
    There is Todo OK, until FED begins tapering / raising Interest rates. At that point there will be a big effect, probably a recession. A world recession might take place too IF-WHEN China slows it growth rate.
    Japan, is an interesting spot. Growth looks as to be back, evensmall growth is a turning point for Japanese. China might have other issues, appart from slowdown, its mega environmental polution , territorial claims and human rights.
    Europe looks as steady in Neutral, not back not Forward. There has been growth in US. Is that enough? It could be enough for the markets, as markets price future growth. If there is some slowdown even some kind of short recession, it could be self inflicted by the FED, intending to put markets in a realistic point. If that would be the case, the only thing the FED should have to look at is not to make a Domino effect to other countries like China or EM , whom when slowing down are more harmfull than a slowdown for the USA, than USA is for itself.
    7 Mar, 01:35 PM Reply Like
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