US job creation rate speeding up ( BBC ... Where is the EU on Jobs? )

BBC ^ | Friday, 4 March, 2005, 21:25 GMT | staff

[Ernest_at_the_Beach]

US job creation rate speeding up

US job creation appears to be quickening

The US economy created 262,000 new jobs in February, the biggest gain in four months and a sharp increase on January's revised 132,000 figure.

According to the Labor Department report, the increase can be attributed to carmakers and recovery in the construction industry.

The 262,000 job creation figure was better than analysts' predictions.

US stocks rallied after the news, with the main Dow Jones index closing Friday up 107.5 points to 10,940.5.

Although the separate US unemployment rate rose to 5.4% in February from January's 5.2%, this increase was put down to a rise in the number of active job seekers.

Welcome reaction

Across the various sectors of the US economy, manufacturing industries added 20,000 new jobs, with much of the gain coming from car workers returning from temporary layoffs, the Labor Department said.

Construction industries added 30,000 jobs, as February's better weather made work easier than in January.

The service sector added 207,000 positions, with the majority of the new jobs being created in professional and business services.

February's figures were broadly welcomed by analysts.

"At long last, for the first time since November 2004, the increase in payrolls exceeded expectations," said John Lonski, chief economist at Moody's Investors Service.

Economy expanding

Patrick Fearon, economist at AG Edwards and Sons, said the numbers were "pretty good".

"The increase in February was the strongest since last October. Even manufacturing had a decent jobs increase in February."

February's job creation figures are yet another sign that the US economy is continuing to expand.

It makes it more likely that the Federal Reserve will stick to its stated policy of raising interest rates at a "measured pace" into 2005, to keep inflation in check as the economy grows.

The US interest rate is currently 2.5% after six 0.5% rises in succession since last June.

Less consumer confidence

In a separate report on Friday, US consumer sentiment fell in February.

According to the University of Michigan's consumer confidence index, February's final reading was 94.1, down from January's 95.5.

Analysts had expected a fall to 94.5.

The consumer confidence figure traditionally translates into consumer spending, however, the correlation between consumer confidence and retail sales has not been as strong in recent years.

[Ernest_at_the_Beach]

Construction Jobs in Vegas?

[mike182d]

This is terrible. We can do better!

/sarcasm

[pissant]

I think the US created as many jobs in one month as the EU has for the last 6 months.

[Caipirabob]

Bush's fault!

First!

[pipecorp]

"The US interest rate is currently 2.5% after six 0.5% rises in succession since last June. "

hmmmmm 6 x .5 = 3.0 hmmmmm. must be the new math.

[bill1952]

They are wrong. There were .25% rates increases in there.

[Nate1984]

Nahh, you just forget the good old days when we were getting paid .5% from the feds whenever we borrowed money.

[RoseofTexas]

I'm vouching for myself here when I say, cross my heart, there is no Less consumer confidence at my household! I would be so lucky to own stock in Dillards, Foleys, Kohl's and Wal-mart!! I'd be a millionaire by now..:)

[Willie Green]

Well if you read the actual press release,
you can see that employment actually fell by 97,000,
and unemployment is UP by 251,000.
Does that sound "good" to you?

[grey_whiskers]

Well if you read the actual press release, you can see that employment actually fell by 97,000, and unemployment is UP by 251,000. Does that sound "good" to you?

Not seasonally adjusted Seasonally adjusted (1) Willie,
I looked in the chart and couldn't find it.

But I did find this: (the wrap when I pasted it makes it obscure...)

The 2nd and 4th columns are BOTH Feb.2004 and are not seasonally adjusted...

Employment status, race, sex, and age

Feb. Jan. Feb. Feb. Oct. Nov. Dec. Jan. Feb.

2004 2005 2005 2004 2004 2004 2004 2005 2005

[snowsislander]

Also, one might note that the participation rate is at 65.6% on a non-adjusted basis. That's a weak number, and year-on-year it's down from February 2004 where it was at 65.9%, which itself was pretty weak.

[Willie Green]

I looked in the chart and couldn't find it.

It's pretty tough to miss...
Right at the top of Table A, under "Household data"...
The figures for the Jan to February change in employment and unemployment are in the far right column (in thousands)

[Willie Green]

I found this factoid rather interesting:

Over the year, the number of persons who held more than one job increased by 432,000 to 7.7 million,...

As more of our good paying jobs are outsourced overseas, an increasing number of Americans must work multiple low-paying jobs in the service sector in order to maintain their standard of living.

[expat_panama]

...Americans must work multiple low-paying jobs...

That's right, and don't forget that something might happen in Iran or North Korea too!

[Ernest_at_the_Beach]

Willie,....Willie....Jan is a fluke month...

Lets compare Feb to the seasonal quarterly numbers....The Feb 2005 employed figure (140,144 ) is up over the III Qtr avg number ( 139,608 ) and the IV Qtr avg number (140,092|) ...

The Feb 2005 unemployed number is (7,988 ) and is lower than III Qtr avg number ( 8,069 ) and IV Qtr avg number ( 8,044 )...

Looks GOOD to me.....

[Ernest_at_the_Beach]

If you go down to non-farm employment things look even better....

III Qtr 2004 was ( 131,731 )
~IV Qtr 2004 was ( 132,302 )
~ Feb 2005 was ( 132,843 ) .....

[SierraWasp]

You don't expect me to seriesly help you argew with Willie Green, do ya??? He's as stuck in his rut about the loss of "middle class America" as I am about the SuperSillyously Subversive Schwarzenegger Goobernorship!!!

[SierraWasp]

Certainly not in Frisco!!!

[JasonC]

That's nothing. Germany hasn't created any new jobs, net, in almost two decades. Ask a bright young German what that means in practice...