• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick U.S. added 275,000 jobs in February, more than expected — but unemployment rate climbs
Editor's Pick

U.S. added 275,000 jobs in February, more than expected — but unemployment rate climbs

by March 10, 2024
by March 10, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Three years ago, the U.S. economy went through an unprecedented upheaval as millions of workers left low-paying jobs for more promising ones. At the same time, many white-collar workers cemented themselves into remote, or at least hybrid, positions that gave them more flexibility.

It was called the ‘great resignation.’

Fast-forward to today, and the situation looks like a mirror image, economists say. Specifically, on average, few workers are leaving their jobs, though they still do not face the prospect of imminent layoffs.

At the same time, the rate of hiring has dropped significantly. Some economists have begun calling it the ‘great stay.’

On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 275,000 jobs in February, up from a revised 229,000 in January and above the 198,000 expected by economists.

The solid job growth data, combined with an unemployment rate that, at 3.9%, is usually a sign of a healthy labor market, is colliding with other, more worrisome trends.

“We’re seeing that the job market is getting cooler,” said Guy Berger, director of economic research at the Burning Glass Institute, a labor research group. “It’s still not a bad one, but it’s looking more like what we saw in the mid 2010s — which was not a terrible job market but still a worse one than what we saw later that decade or what we had in the post-pandemic period.” 

The labor market faces an unusual set of crosscurrents that makes it hard to predict whether the economy can maintain its strength in the medium term and beyond, said Mark Zandi, chief economist at Moody’s Analytics.

In addition to quits being down, he noted that hours worked have, in some instances, been cut back to recessionary levels. On Thursday, the agency reported a 3.3% decrease in hours worked for manufacturing — the largest such decline since the historic drop-off in the second quarter of 2020.

Cuts among temporary jobs have also picked up, Zandi said, which can often signal that cuts to full-time positions are in the offing.

‘It feels fragile,’ he said.

At the same time — and despite some high-profile headlines reflecting thousands of roles eliminated over the past year — actual layoff rates remain below pre-pandemic levels.

Yet here, too, there are worsening signs. The job placement firm Challenger, Gray & Christmas on Thursday reported the highest level of layoff announcements for any February since the global financial crisis.

“As we navigate the start of 2024, we’re witnessing a persistent wave of layoffs,” Andrew Challenger, the firm’s labor and workplace expert, said in a statement. “Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs.”

Zandi noted that firms’ profit margins are starting to decline amid higher interest-rate costs, which could put further pressure on their payrolls.

In general, he said, ‘the market just feels like it’s all over the place.’

Unfortunately, if you’re looking for a job, it appears to be taking longer to find a new one. Bureau of Labor Statistics data shows the number of people experiencing unemployment for 15 to 26 weeks has climbed 53% since it hit a low in March 2022.

“If someone needs to find a new job or wants to find a better job, the opportunities right now are more limited, aside from a few fairly narrow sectors,” Berger said.

The industries doing the most hiring include health care and social services, which are expanding thanks to the aging population, and government services, whose offers of lower salaries, on average, are increasingly seen as competitive given the relative lack of other new opportunities elsewhere in the private sector, Berger said.

Given the still low rate of layoffs in the broader economy, Berger is optimistic that the ‘great stay’ can be sustained. An example of a firm holding its headcount steady is Amazon, which has trimmed payrolls from post-pandemic highs, but which remain significantly above pre-pandemic levels.

“We are investing, and we are adding in some areas,” Brian Olsavsky, Amazon’s chief financial officer, said on a conference call with reporters following the company’s quarterly results. “But there’s a general feeling in most teams that we’re looking to hold the line on headcount, perhaps go down as we can drive efficiencies.”

There remains reason for some optimism. Job openings remain well above pre-pandemic levels. In a follow-up interview, Andrew Challenger pointed out that the U.S. has had three consecutive months of net new job growth, including a 12-month high of 353,000 jobs added in January. The January number was revised downward to 229,000.

‘It’s still a very good labor market,’ he said. ‘There are certainly companies that want to keep people; people are staying. But there’s also increased layoff activity. They don’t have to be correlated — sometimes it’s just volatility.’

Yet, in February, employers announced plans to hire just 10,317 workers, for a total of 15,693 so far in 2024, the lowest year-to-date total for announced hiring plans since Challenger, Gray & Christmas began its tracking in 2009, the company found.

The broader picture remains an unusual one, Berger said.

‘There are relatively few new people coming in, but relatively few people are leaving,’ he said. ‘It’s a weird environment.’

This post appeared first on NBC NEWS
You Might Also Like
  • 65-year-old quit his job and emptied his life savings to start a business — now he’s worth $11 billion
  • Renesas Unveils Quick-Connect Studio: Industry’s First-Ever Cloud-based System Development Tool to Dynamically Create IoT Software
  • The rental and leasing car telematics market is expected to grow at a CAGR of 17.6 percent in the next 5 years
  • July 4 travel hitting a record thanks to lower gas prices, humming economy
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Biden says US has no ‘red line’ on Israel in Hamas war where ‘they don’t have the Iron Dome to protect them’
next post
Week Ahead: NIFTY Stares at Both Incremental Highs As Well As Consolidation At Higher Levels; Tread With Caution

You may also like

Hasbro says it’s taking steps to offset China tariff effects

February 21, 2025

As student loan payments loom, borrowers weigh deferrals, ‘debt strikes’...

August 9, 2023

Federal Trade Commission accuses three drug middlemen of inflating insulin...

September 23, 2024

Streaming has surpassed cable as America’s most-watched viewing platform

July 21, 2023

Nearly half of Americans are worried about the safety of...

May 5, 2023

Zyn-maker Philip Morris announces $600 million Colorado facility to ramp...

July 17, 2024

Bissell recalls 3.2 million handheld steam cleaners after scores of...

July 23, 2024

UPS workers overwhelmingly approve new contract, ending strike threat

August 23, 2023

Sinclair explores selling roughly 30% of its broadcast stations, sources...

May 11, 2024

3 Reasons To Have Local IT Support For Your Tech...

January 23, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,763 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,449 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,428 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,305 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    As tourists seek refunds for upcoming...

    August 17, 2023

    Nvidia CEO Jensen Huang’s net worth...

    May 27, 2024

    Sierra Wireless Offers Critical Communications Solution...

    December 16, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here