Unemployment Rate Drops to 3.8% as U.S. Economy Adds 20,000 Jobs – NTK Network Unemployment Rate Drops to 3.8% as U.S. Economy Adds 20,000 Jobs

Unemployment Rate Drops to 3.8% as U.S. Economy Adds 20,000 Jobs

Meanwhile, wage growth is at a reported 10-year high.

By NTK Staff | 03.08.2019 @9:40am
Unemployment Rate Drops to 3.8% as U.S. Economy Adds 20,000 Jobs

The unemployment rate dropped to 3.8 percent in February, according to the latest report from the Bureau of Labor Statistics. Last month, the U.S. economy added just 20,000 jobs, but wage growth is at a 10-year high, according to USA Today.

Economists site a few reasons for the below average job growth in February:

Economists were looking for a pullback in payroll growth last month after outsize gains in January that were inflated by unusually mild weather. Meanwhile, above- average snowfall when Labor conducted its survey in mid-February was set to reduce total employment by at least 40,000, Goldman Sachs said.

But on the bright side, job gains in December and January were revised up by a total of 12,000. December’s numbers were revised up to 227,000 (up from 222,000), and January’s numbers up to 311,000 (up from 304,000).

Another bit of good news: wage growth hit a 10-year high:

Average hourly earnings rose 11 cents to $27.66, pushing up the annual gain from 3.2 percent to 3.4 percent, highest since April 2009.

Pay increases have accelerated as employers bid up to draw a shrinking pool of available workers amid a historically low unemployment rate. Average wage growth is expected to reach 3.5 percent by the end of the year, an advance that could spark faster inflation and prod the Federal Reserve to raise interest rates more rapidly.

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