Last winter's tepid labour market was largely blamed on bad weather. This time around, December through February averaged over 100,000 more jobs a month despite similarly frigid conditions. With hiring on firm footing, it's time to put to rest the oldest, and worst, excuse in the book.
Employment numbers for February were excellent yet again. The US economy added 295,000 positions, marking the 12th consecutive month above 200,000, a feat not accomplished since 1977. Meanwhile, the jobless rate dropped 0.2 percentage point to 5.5 per cent, the lowest since the recession ended and within range of what economists generally consider full employment. Although the headline figure benefited from a drop in the workforce, the labour participation rate also has steadied around February's 62.8 per cent for over a year.
Adding 863,000 new workers over the past three months looks particularly impressive considering the brutal weather during which employers hired them. February set records for blistering cold across many parts of the US. Some cities experienced record snowfall during the month, like Boston's 65 inches, which exceeded the previous record of just 42 inches - and 59 inches for all of last winter.
Although conditions weren't much better a year ago, they were almost universally blamed for all sorts of economic and corporate woes. In terms of jobs, the three-month period from December to February produced 154,000 jobs on average last winter compared to 288,000 a year later. The construction industry, in particular, is illustrative of the weather-blaming folly. Few sectors suffer as much from a rough winter. Yet some 122,000 jobs have been created since December, the third-best three-month clip since 2006.
Overcoming the season's ravages didn't make everything sunnier, however. Hourly earnings increased just 0.1 per cent in February. In the past few recessions, only when the unemployment rate dipped below 5 per cent did wage growth really take off. It might not be until the next cycle of freezing temperatures when that happens, but the US economy - and investors - should feel free to give Mother Nature the cold shoulder.
Employment numbers for February were excellent yet again. The US economy added 295,000 positions, marking the 12th consecutive month above 200,000, a feat not accomplished since 1977. Meanwhile, the jobless rate dropped 0.2 percentage point to 5.5 per cent, the lowest since the recession ended and within range of what economists generally consider full employment. Although the headline figure benefited from a drop in the workforce, the labour participation rate also has steadied around February's 62.8 per cent for over a year.
Adding 863,000 new workers over the past three months looks particularly impressive considering the brutal weather during which employers hired them. February set records for blistering cold across many parts of the US. Some cities experienced record snowfall during the month, like Boston's 65 inches, which exceeded the previous record of just 42 inches - and 59 inches for all of last winter.
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Overcoming the season's ravages didn't make everything sunnier, however. Hourly earnings increased just 0.1 per cent in February. In the past few recessions, only when the unemployment rate dipped below 5 per cent did wage growth really take off. It might not be until the next cycle of freezing temperatures when that happens, but the US economy - and investors - should feel free to give Mother Nature the cold shoulder.