Job growth is one of the biggest concerns people have that transcends politics. Trends with growth do more than show if more jobs are being added to the United States economy.
The number of jobs that are added each month can have a substantial effect on the economy. The Federal Reserve looks at growth rates to set interest rates. Job growth rates can also affect the stock market.
Job growth has always been a big concern for economists, but recent numbers show that things may be on an upswing.
Job growth for February exceeded expectations
According to a report released by the Bureau of Labor Statistics, The United States added 235,000 jobs in February.
The unemployment rate also went through a small change. Unemployment was at 4.8% in January, but decreased slightly and is now at 4.7%.
Wages also saw a little bit of growth.
They rose by $0.06 to $26.09 in February, after a $0.05 increase in January. Earnings figures from February were also positive with average hourly earnings increasing 0.2% since January, and 2.8% over the previous year.
Expect an interest rate increase
If you’re already gainfully employed and happy with your salary or wages, you may not see how the jobs report can affect your day to day life.
You don’t have to be an economist or investment banker to see the affects the latest jobs and unemployment report.
This information could have far-reaching effects for the Federal Reserve’s March meeting on the 14th and 15th.
The central bank is expected to announce their decision to introduce a quarter-point increase in their benchmark interest rate. The odds of a March rate increase grew substantially because of the release of the report.
Some experts from the CME Group’s FedWatch program reported that the odds for a March increase grew to a whopping 90%, significantly up from the 25% estimate in February.
Trump’s business-friendly economy could be a reality
Economic experts have been waiting to see how President Trump’s newest policies would affect the economy.
The latest jobs report could show that people should expect to see a prosperous economy.
This is the first jobs report to give insight into job growth under Trump’s presidency.
Although it’s important to note that some are still crediting Obama’s economic policies and changes for the good jobs report, these numbers still reflect a growth that took place when President Trump was in office.
Some business owners may feel more comfortable bringing on new employees because they anticipate that President Trump will enact policies that will benefit employers. Brokers may also feel more comfortable taking riskier investments.
Potential tax cuts and changes to the ACA could be behind the recent job growth, and if that’s the case we should expect to see more growth in the near future.
Other forces at work?
Some people are crediting a different force for positive growth numbers: mother nature.
People across the country have experienced a relatively mild winter. The lack of major winter storms means that employers haven’t had to close their businesses because of inclement weather.
What do you think about the most recent jobs report? Are you going to be hiring more employees or taking riskier investments?
Tell us about it in our comments! Better yet, contact us so we can talk about what your next moves should be.