The US economy added 275,000 jobs in February according to the Department of Labor on March 8, 2024.
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(Washington, DC) – The US economy added 275,000 jobs last month, exceeding expectations. Economists had been expecting the addition of closer to 198,000 non-farm jobs. The majority of the added jobs were in health care, social assistance, and food services, according to the US Department of Labor.
That said, January’s job growth was revised sharply lower. The new figure for the first month of 2024 is now 229,000 jobs added, down from 353,000.
Meanwhile, the unemployment rate rose by 0.2% to 3.9% after checking in at 3.7% in January. Americans’ average hourly wages increased to $34.57.
The stock market reacted to the latest jobs report on Friday. All three major indices finished lower for the session, as the data offers conflicting indicators as to what the Fed may choose to do next regarding rates. Investors have been betting the central bank will look to cut rates in 2024, after enacting numerous hikes over the past two years in a bid to cool inflation.
While the hotter-than-expected jobs report could suggest the Fed will not want to cut rates, average hourly wage growth was not as high as expected — and unemployment ticked up. The Fed is always looking to balance its pursuit of 2% annual inflation against the need to protect the labor market.
