Labor force participation increase is biggest since 2003 as many Americans finally get back to work

CNBC ^ | 03/09/2018 | Jeff Cox

[SeekAndFind]

The U.S. economy did more than give jobs to 313,000 in February — it brought nearly three times that amount off the sidelines, where more than 95 million Americans still sit.

Inside the glittering nonfarm payrolls report the Bureau of Labor Statistics released Friday were some even more inspiring numbers. Skilled labor positions surged with big increases in construction and manufacturing, which has seen its best three-month period since 1984.

On a bigger-picture level, there was even more.

The labor force surged by 806,000, the biggest move since September 2003, and now sits just below 162 million. That's due to 653,000 people no longer counted as being out of the labor force and a growth of 785,000 folks reporting to be at work, according to the government's household survey. The labor force participation rate rose to 63 percent while the employment-to-population ratio rose to 60.4 percent, both the highest since September.

It was all part of a jobs market that continues to defy expectations. Every time economists or officials at the Federal Reserve pronounce the U.S. at "full employment," a report seems to come out indicating that there's still plenty of room for growth.

"What companies have been trying to do over the six months is solving this Rubik's Cube, trying to figure out what we have to do to get those people off the bench to participate," said Bill Ravenscroft, senior vice president at Adecco Staffing. "If we continue this type of [payrolls] growth this is going to be the catalyst for a wage spike."

A jump in earnings was not a part of the February jobs report.

[Alberta's Child]

Right -- thanks. But as you said, even the Social Security figures don't necessarily give an accurate indication of how many people are not working because they're fully retired. There are two anomalies in these figures:

1. People who are collecting Social Security but are still working well into their 70s or even their 80s.

2. People who are collecting Social Security and are retired "involuntarily" -- i.e., they'd still be working at their last job if it were up to them, but they've been downsized out of their last job and they're able to retire on their nest egg out of necessity.

[Zathras]

Agreed.
The federally mandated features which are constantly creeping into cars seem to add 1000/feature.

[central_va]

"If we continue this type of [payrolls] growth this is going to be the catalyst for a wage spike."

Gee, how horrible! Rising wages in the USA? Terrible. /sacrasm

[central_va]

Tariffs only help manufacturing areas. When did economic stupidity become the norm around here?

[central_va]

I think a ton of rolled steel is WAY less than $700.00

[CodeToad]

Don’t be spooked. The tariffs have a very positive result.

[xzins]

I agree. I’ve discovered that only 1 ton of steel goes into the average car and not 2 tons, so cut in half all my estimates. About $175 increase per car.

[xzins]

Could be. I went to a market page and looked up numbers, but there was variety of prices depending on type.