| Listen to our audio presentation: U.S. Job Growth Surges in February 2024 |
Riding high on the back of the broader economic landscape, the US labor market showed substantial growth in February 2024, adding a substantial 275,000 jobs to Nonfarm payroll employment. This uptick surpasses the average monthly gain of 230,000 jobs seen over the past year. Despite these favorable numbers, the unemployment rate noted a minor hike up to 3.9 percent from January’s 3.7 percent.
Sectoral growth was a remarkable contributor to this stark uptick. Among the frontrunners contributing to the job market’s robust health were Healthcare, Government institutions, Food Services and Drinking Places, Social Assistance, and Transportation and Warehousing.
Healthcare continued its growth trend, adding a significant 67,000 jobs. Government employment followed suit, increasing by 52,000 jobs, with both local and federal levels bolstering. The Food Services and Drinking Places industry was back in form with the addition of 42,000 jobs, bouncing back from a period of stagnation. Social Assistance did not lag, adding 24,000 jobs, keeping pace with its average growth from the past year. Lastly, Transportation and Warehousing saw an increase of 20,000 jobs with couriers and messengers, along with air transportation leading this rise.
The economic barometer, Wage Growth, noted modest growth in February. Average hourly earnings for all employees on private nonfarm payrolls nudged up by 5 cents to $34.57, following a substantial increase in January. This points to a modest 0.1 percent growth and a year-over-year increase of 4.3 percent. Meanwhile, the labor force participation rate and employment-population ratio held steady at 62.5 percent and 60.1 percent, respectively.
Looking back, January 2024 was a stellar month; the nonfarm payrolls increased by a whopping 353,000 jobs. The low, stable unemployment rate of 3.7 percent underpinned a period of significant low unemployment. Average hourly earnings registered a rise of 0.6 percent, indicating a year-on-year increase of 4.5 percent.
The US labor market’s overall health appears vigorous. The marked job growth across varying sectors and the consistently low unemployment rate indicates a thriving economic landscape. However, the minor surge in the unemployment rate in February is a reminder that monitoring these metrics and maintaining stability is paramount for continued growth.
Information Box:
– The labor force participation rate was a steady 62.5 percent in February 2024.
– The Healthcare and Government sectors led job gains in February.
– The unemployment rate showed a minor uptick to 3.9 percent in February, from 3.7 percent in January.
– Average hourly earnings in February rose marginally by 5 cents to rest at $34.57. The year-over-year increase stands at 4.3 percent.
– January 2024 saw a sizable increase in nonfarm payrolls – adding 353,000 jobs, showcasing a period of significant low unemployment.
References:
Reference 1: Bureau of Labor Statistics, U.S. Department of Labor, Employment Situation Summary, February 2024.
Reference 2: Healthcare Industry Report, February 2024, U.S. Health and Human Services Department.
Reference 3: U.S. Government Employment Report, Office of Personnel Management, February 2024.