In year 2015, the U.S labor market burnt up – that reason was enough for Federal Reserves to higher up rates– for the first time in decade – a milestone in the U.S. recovery from the 2007-09 recession. The year closed with an admonitory note. As per the Labor Department report, increment ratio was more that than expected – 287,000 for a week through December 26; the highest since July 2015.
OCTOBER: There were 307,000 new employments from 298,000.
NOVEMBER: There were 252,000 new employments in instead of 211,000.
Energy companies, knocked down by bearish crude costs, were the only ones that had eliminated overall employment on annual scale December 2015. Manufacturing firms added 2,000 net new jobs in December 2015, although that was bearish from 4,000 in November’s record. However, in construction sectors, the firms added 24,000 net new jobs. U.S. added an average of 284,000 jobs in initial three months last year. Employment gains for January and December were raised by a combined 30,000.
As per Labor Department data, the bulk of the new jobs i.e. of 242,000 created in February are concentrated in fields such as retail and hospitality that do not pay high.Although the unemployment rate stands steady at 4.9%, yet an increment in employment rate foretells good economic scenario despite a complicated start of the year for stocks.
“It’s clear that labor market conditions are still strong. The lack of a more marked pickup in wage growth is the only missing element.” – Capital Economics’ chief U.S. economist, Paul Ashworth
Similarly, Market Watchers had laid front a poll estimate of approx. 195,000 increase in new non-farm recruitment. To which, stocks got boosted with this better-than-expected rise during early TRADING. Treasury prices rose on the belief that a robust labor market could prompt the Federal Reserve to soon raise interest rates again.
The shifting composition of new jobs appeared to suppress wages in February. Average hourly pay fell 3 cents to US$ 25.35 an hour. Hourly pay rose a mild 2.2% from February 2015 to February 2016, down from 2.5% in the prior month.
PROFESSIONAL AND BUSINESS SERVICES: 23,000 added recruitment
HEALTH-CARE COMPANIES AND SOCIAL-ASSISTANCE PROVIDERS: 57,000 added recruitment
RETAILERS: 55,000 added recruitment
RESTAURANTS: 40,000 added recruitment