We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
February Jobs Just 20K, Unemployment Falls to 3.8%
Read MoreHide Full Article
Friday, March 8, 2019
Today’s Employment Situation results from the U.S. Bureau of Labor Statistics for February were released ahead of today’s opening bell, with results well below the expected 180K new jobs created for the month: 20K new jobs is the lowest tally since September of 2017, and far below the upwardly revised 311K in January. The Unemployment Rate sank to 3.8% from the previous 4.0%.
Average Hourly Earnings rose 11 cents on average to $27.66 per hour, +0.4% sequentially. Year over year, we see +3.4% earnings growth, the largest upswing since April of 2009. We also saw an upward revision to December’s job totals, from 222K to 227K, bringing the 3-month average to 186K — voila! right in-line with monthly expectations.
The sectors taking the biggest hits last month were Construction, down 31K, and Leisure/Hospitality at 0 (down from +89K the previous month). While the Leisure/Hospitality figure aligns with Wednesday’s ADP (ADP - Free Report) private-sector figure, Construction was strong in that report. This discrepancy will likely be revised on one end or the other — perhaps the government shutdown or major weather-related impediments in February will reveal a more conclusive number.
Labor Force Participation rose to 63.2%, a healthy number relative to past results, and certainly pointed in the right direction, especially with the Unemployment Rate coming down. The U-6 read (aka “real unemployment,” posted the widest month-over-month drop in recorded history: from 8.1% in January to 7.3% in February.
In short, despite the very disappointing headline figure, there is plenty to like when poking through the details. A rebound in Construction and Leisure/Hospitality would go a long way toward keeping this long-term healthy labor market apace with a still-strong economy.
In other news, Housing Starts for January rose admirably to 18.6% from the 9.5% estimate, or 1.230 million new units. Building Permits, a forward indicator of future Starts, rose 1.4% to 1.345 million. We’re still a bit behind on these figures due to the government shutdown, but seasonal weather-related issues does not seem to have negatively affected the January homebuilding space.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
February Jobs Just 20K, Unemployment Falls to 3.8%
Friday, March 8, 2019
Today’s Employment Situation results from the U.S. Bureau of Labor Statistics for February were released ahead of today’s opening bell, with results well below the expected 180K new jobs created for the month: 20K new jobs is the lowest tally since September of 2017, and far below the upwardly revised 311K in January. The Unemployment Rate sank to 3.8% from the previous 4.0%.
Average Hourly Earnings rose 11 cents on average to $27.66 per hour, +0.4% sequentially. Year over year, we see +3.4% earnings growth, the largest upswing since April of 2009. We also saw an upward revision to December’s job totals, from 222K to 227K, bringing the 3-month average to 186K — voila! right in-line with monthly expectations.
The sectors taking the biggest hits last month were Construction, down 31K, and Leisure/Hospitality at 0 (down from +89K the previous month). While the Leisure/Hospitality figure aligns with Wednesday’s ADP (ADP - Free Report) private-sector figure, Construction was strong in that report. This discrepancy will likely be revised on one end or the other — perhaps the government shutdown or major weather-related impediments in February will reveal a more conclusive number.
Labor Force Participation rose to 63.2%, a healthy number relative to past results, and certainly pointed in the right direction, especially with the Unemployment Rate coming down. The U-6 read (aka “real unemployment,” posted the widest month-over-month drop in recorded history: from 8.1% in January to 7.3% in February.
In short, despite the very disappointing headline figure, there is plenty to like when poking through the details. A rebound in Construction and Leisure/Hospitality would go a long way toward keeping this long-term healthy labor market apace with a still-strong economy.
In other news, Housing Starts for January rose admirably to 18.6% from the 9.5% estimate, or 1.230 million new units. Building Permits, a forward indicator of future Starts, rose 1.4% to 1.345 million. We’re still a bit behind on these figures due to the government shutdown, but seasonal weather-related issues does not seem to have negatively affected the January homebuilding space.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>