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Tuesday, March 21, 2023

More jobs were created than expected in the US

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the american economy added jobs at a brisk pace in Februarywhich will probably guarantee that RFederal Reserve raises interest rates for longer, although wage inflation showed signs of cooling.

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Nonfarm payrolls increased by 311,000 jobs last monththe Labor Department’s employment report showed Friday. January data was revised downward to show 504,000 jobs jobs added instead of the previously reported 517,000.

Economists polled by Reuters they had forecast employment growth of 205,000 jobs. According to them, the economy needs to create 100,000 jobs a month to keep up with the growth of the working-age population.

Estimates for February payrolls ranged from 78,000 to 325,000 jobs.

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The higher-than-expected rise in payrolls suggests that the January hiring rebound was not a fluke.

Economists had argued that job growth in January was helped by a number of factors, including unusually warm weather, annual baseline data revisions and overly generous seasonal adjustment factors.

He strong consumption growth in January was also partly attributed to seasonal factors.

The average income per hourin year-on-year terms, rose 4.6% and the monthly figure increased 0.2%, both lower than estimated.

“As the president of the Fed, Jerome Powell, recently said, these figures will condition, together with the CPI for the same month, the decision on the amount of the interest rate hike that the FOMC will carry out at the end of the month (of 25 basis points or 50 basis points). basic points). Thus, figures that show a significant slowdown in job creation in the month will be very well received by both the bond and stock markets in Europe and the US. On the contrary, readings that exceed what was expected by analysts can cause both markets to deepen the correction”, they highlighted this morning in Link Securities.

Source: Ambito

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