Page 7 - ATD05March2016
P. 7
U.S. NEWS A7
Saturday 5 March 2016
US Financial Front:
Strong job growth in February helps dispel recession fears
A restaurant posts a sign indicating they are hiring, in Miami. Voters and economists hold sharply the Fed to raise rates from the world’s second-largest
divergent views on U.S. economic growth. According to a majority of economists surveyed by The record lows in December economy, is struggling with
Associated Press, the United States is resilient enough to defy the global economic slowdown and before it paused at its Jan- high corporate debts and
the sinking stock markets that have fanned fears of a new U.S. recession. uary meeting in the face of slower growth. Oil prices
global pressures, falling oil have tumbled amid rela-
(AP Photo/Alan Diaz) prices and subpar inflation. tively low demand. The
“It’s probably a better than strong dollar has eaten
JOSH BOAK ing its challenges without either working or looking for a 50 percent proposition away at exports.
AP Economics Writer suffering much damage. work — to a 13-month high that they will raise the rates With unemployment re-
WASHINGTON (AP) — A ro- “Neither global headwinds, of 62.9 percent. in June,” said Kevin Logan, maining low, economists
bust February jobs report financial turbulence nor Friday’s jobs report will fac- chief U.S. economist at the say more companies
showcased a resilient U.S. political uncertainty has tor into an increasingly bank HSBC. should begin to raise pay
economy just as fears of a dimmed American busi- tense presidential race. Stock investors appeared to attract workers, thereby
new recession had begun ness’ enthusiasm for hir- Hillary Clinton, the Demo- to cheer last month’s job fueling more hiring and in-
to surface. ing,” said Sal Guatieri, an cratic front-runner, has cast growth. The Standard & creasing people’s ability to
Economic reports in recent economist at BMO Capital herself as the logical suc- Poor’s 500 index climbed 1 spend, invest and save.
weeks had fueled anxiet- Markets. “The solid jobs re- cessor to President Barack percent in late afternoon For years, tepid pay growth
ies about a looming down- port should allay recession Obama and his steward- trading. was one of the key weak-
turn: Manufacturers were fears.” ship of the economy. The Retailers added 54,900 jobs nesses of the economic
slumping. Stocks had plum- Retailers, restaurants, con- Republican hopefuls have last month. Restaurants recovery. Many of the jobs
meted. China was slowing struction firms and health spotlighted what they call and bars added 40,200, created in the wake of the
sharply along with other care providers — the core the economy’s failures, the health care sector Great Recession were in
emerging markets. The ris- of consumer demand and blaming tax rates and 38,100 and construction lower-paid occupations —
ing dollar had crushed ex- vital fuel for economic Obama’s signature health companies 19,000. from cashiers, waiters and
ports. growth — drove much of care program for stagnant Hiring by employers that store clerks to home health
But last month, U.S. employ- the hiring. incomes and the loss of are directly linked to con- aides and temporary work-
ers sent a clear message of Worker pay did slip last blue-collar jobs. sumers has more than off- ers.
confidence. They added a month after having picked February’s job growth set layoffs at manufacturers But in recent months, wage
healthy 242,000 jobs, while up in January. But more could also give the Fed- and fossil fuel companies gains started to tick up. The
the unemployment rate Americans began search- eral Reserve a path to — two sectors squeezed by increases bolstered hopes
held at a low 4.9 percent, ing for jobs and found raise interest rates again as the pressures of uncertain- that a lower unemploy-
the government said Fri- them. That lifted the job early as June, according ty in China, sluggishness in ment rate had prompted
day. The gains showed that market’s participation rate to many economists. Prior Europe, declining oil prices companies to raise pay.
the economy is surmount- — the proportion of adults solid job growth had led and a stronger dollar. Yet between January and
Job losses in mining — February, earnings fell
which includes the bat- slightly in a clear setback.
tered energy industry — Economists were search-
have totaled 140,400 in the ing for explanations for the
past 12 months. And man- sudden reversal given the
ufacturing has added just otherwise strong jobs re-
12,000 jobs over that time. port.
Consumers have provided Ian Shepherdson, chief
the foundation for much of economist at Pantheon
the job market’s improve- Macroeconomics, noted
ment in what’s become that wages might have
something of a self-sustain- slipped last month be-
ing cycle. The nearly 2.7 cause of the timing of the
million workers who have survey for the jobs report.
been added over the past It occurred before Feb. 15,
12 months have bolstered possibly missing a payday
spending on autos, housing for workers who are paid
and meals out. semimonthly.
That spending has sus- Wage growth is often weak
tained U.S. economic when the jobs report survey
growth, even as other in- week doesn’t include the
dicators have signaled a 15th of the month, Shep-
possible drop-off. China, herdson noted.
