The Labor Department reported that the economy added 97,000 new jobs in February, in line with economists' expectations. As has become the pattern, prior months' job gains were revised substantially higher, so we should expect the same with today's number. The construction sector lost 62,000 jobs. It was hit hard by the combination of unusually cold weather and the housing slowdown. The underlying message, though, is how little problems in the housing industry--and for that matter, manufacturing as well--are effecting the broader economy. Service producing jobs were up 168,000 with strong growth in education, leisure industries, information and finance. Average hourly earnings increased 0.4% to $17.16 for non-supervisory works and the unemployment rate dipped to 4.5%.
As I write, the bond market is selling off sharply. Today's data pushes the long-deferred hope of an ease in the fed funds rate back to August or September at the earliest.
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