Pulse.com.gh logo
Go


In U.S US creates 242,000 jobs in February

The Labor Department numbers underlined the strength of the US economy and may allow the Federal Reserve to gradually raise interest rates this year.

  • Published:

The US economy added 242,000 jobs in February, far better than the 190,000 expected by economists.

The Labor Department numbers underlined the strength of the US economy and may allow the Federal Reserve to gradually raise interest rates this year.

Another 30,000 jobs were also added to the previous estimates for December and January.

The unemployment rate was unchanged from January at 4.9% - an eight-year low.

Luke Bartholomew, investment manager at Aberdeen Asset Management, said: "This should scotch suggestions that the US is about to tip into recession. It's yet more evidence that the labour market is in good shape, although wage growth was more disappointing."

The year-on-year growth in average hourly earnings slowed to 2.2% last month from 2.5% in January.

Last week, official figures indicated that the US economy expanded at an annualised pace of 1% in the quarter, compared with an initial estimate of 0.7%.

READ MORE

US economy adds 292,000 jobs in December



The strong jobs market and improved growth outlook, together with signs that inflation is creeping up, could prompt the Fed to raise rates in the summer.

It did so in December for the first time in nearly a decade - a decision that had been criticised by some for holding back the economic recovery.
Services growth

However, Chris Williamson, chief economist at Markit, questioned whether the Fed would act anytime soon.

"Current signs of rising inflationary pressures and a tightening labour market need to be viewed alongside indications that the pace of economic growth may be slowing, and possibly sharply, amid growing concerns about the outlook," he said.

"The big question will be the extent to which the Fed heeds the warning lights flashing in the background."

The services sector created 245,000 jobs last month after adding 153,000 jobs in January, while construction added 19,000 positions and government added 12,000.

However, mining lost a further 18,000 jobs after shedding 9,000 positions the previous month, and the manufacturing sector shed 16,000 jobs, reversing some of January's surprise increase.

Meanwhile, the US trade deficit rose in January as exports fell for a fourth consecutive month.

The Commerce Department said the gap between exports and imports climbed to $45.7bn in January from a revised $44.7bn in December.

Exports of goods and services fell 2.1% in January to $176.5bn - the lowest since June 2011. US exporters have been hurt by a global economic slowdown and by a strong dollar that makes US products more expensive overseas.

Imports fell 1.3% to $222.1bn - the lowest since April 2011.

 

Credit: BBC

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Breaking Otabil finally breaks silence on banking controversiesbullet
2 Capital Bank Collapse Here are the roles of a non-executive board chairbullet
3 Collapse Bank Here’s what former staffs of Capital Bank are doing...bullet
4 Nana Appiah Mensah Menzgold boss apologises to BoG after Twitter rantbullet
5 Investment banks in Ghana Top 5 investment banks in Ghana and...bullet
6 Bank Collapse Capital Bank Board misused GHC 610 million from...bullet
7 Banking Crises Sahel Sahara and Omni Bank become latest to mergebullet
8 Collapsed Banks Here are the auditing firms for the 7...bullet
9 Banking In Ghana Stranded customers of First Allied...bullet
10 Education Top 5 private high schools in Ghana...bullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Money Alert Meet Africa's richest womanbullet
5 Support Finance minister buys Kantanka carbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Tech 6 reasons you should buy an iPhone SE instead of any...bullet
9 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet

Business