236k Jobs Added in February

US Jobs Update

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The U.S. economy gained 236,000 jobs in the month of February and unemployment is at a 4-year low.  The surprisingly high number of jobs added to the economy pushed down the unemployment rate to 7.7%.  The job growth occurred across many sectors… One particularly positive sign is that 48,000 construction jobs were added leading some to believe that the (slow) recovery in the housing market is aiding job creation.

It’s not all good news, however, and there are always multiple ways of interpreting the data.  Economists also noted that the size of the labor force as a whole contracted by 130,000.  While some of this is due to individuals retiring and leaving the workforce, discouraged unemployed individuals continue to give up their search for jobs which also pushes down the workforce and unemployment.  The number of government employees shrank by 10,000 jobs and with the upcoming sequester, economists anticipate spring will be see a weaker labor market yet.

Michelle Meyer, senior United States economist at Bank of America Merrill Lynch estimates that the unemployment rate will stabilize at 7.5% later this year.