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Anonymous ID: 8a6dcd March 8, 2019, 8:23 a.m. No.5575058   🗄️.is 🔗kun

U.S. economy gains paltry 20,000 jobs in February

 

WASHINGTON (Reuters) - U.S. job growth almost stalled in February, with the economy creating only 20,000 jobs as construction and retail payrolls dropped, which could raise concerns about a sharp slowdown in economic activity.

 

The job growth reported by the Labor Department on Friday was the weakest since September 2017, but it probably understated the health of the labour market as other details of the closely watched employment report were strong.

 

The unemployment rate fell back to below 4 percent and annual wage growth was the best since 2009. In addition, data for December and January were revised to show 12,000 more jobs created than previously reported.

 

Still, the economy that in July will mark 10 years of expansion, the longest on record, is slowing and the weakening job gains support the Federal Reserve's "patient" approach towards further interest rate increases this year.

 

"The sharp slowdown in payroll employment growth in February provides further evidence that economic growth has slowed in the first quarter," said Michael Pearce, senior U.S. economist at Capital Economics in New York. "That adds weight to our view that the Fed will not be raising interest rates this year."

 

Economists polled by Reuters had forecast nonfarm payrolls rising by 180,000 jobs last month and the unemployment rate falling to 3.9 percent.

 

The slowdown likely reflected the fading weather-related boost in the prior two months and workers becoming more scarce. A stock market selloff and jump in U.S. Treasury yields in late 2018, which tightened financial market conditions, were also likely factors.

 

About 390,000 workers stayed at home in February because of the bad weather, not much different from previous years. The length of the average workweek fell to 34.4 hours from 34.5 hours in January.

 

U.S. stock index futures extended losses and yields on U.S. Treasuries plummeted after the release of the data. The dollar held earlier losses.