Hiring surge added 313K jobs in February, most in 1½ years

The influx of new workers kept the unemployment rate unchanged at 4.1 percent.

Posted: Mar 9, 2018 8:02 AM

WASHINGTON (AP) — U.S. employers went on a hiring binge in February, adding 313,000 jobs, the most in any month since July 2016, and drawing hundreds of thousands of people into the job market.

The Labor Department said wage gains, meanwhile, fell from January to 2.6 percent year-over-year. Strong hourly wage growth had spooked markets last month because it raised the specter of inflation. But January's figure was revised one-tenth of a point lower to 2.8 percent.

The influx of new workers kept the unemployment rate unchanged at 4.1 percent.

The surge of job gains may reflect, in part, confidence among some businesses that the Trump administration's tax cuts will accelerate growth. Consumers are also benefiting from higher after-tax income, which grew last month at the fastest pace in a year, aided by the tax cuts.

In the meantime, economists are calculating how the Trump administration's decision Friday to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum might affect the job market. The Trade Partnership, a consulting firm, estimates that the tariffs will eliminate roughly 145,000 jobs.

Steel and aluminum producers would hire more people. But the gains would be more than offset, the firm calculates, by sharp losses among companies that use the metals, such as automakers, packaged food companies and those that make industrial machinery.

During 2017, the stock market, as measured by the S&P 500 index, surged 19 percent, partly on anticipation of corporate and individual tax cuts. Yet barely a month after the tax cuts became law, investors shifted their focus to the potential consequences: Faster growth that might intensify inflation and lead the Fed to accelerate its rate hikes.

There have been some signs that price pressures are picking up. But overall, inflation remains in check. The inflation gauge that the Fed tends to monitor most closely shows an increase of just 1.7 percent from a year earlier, below the central bank's 2 percent target level.

Most economists expect growth to pick up in the coming months and to accelerate inflation slightly by year's end. They have forecast that the economy will expand at just a 2 percent annual rate in the January-March quarter before topping 3 percent in the next two quarters.

For now, consumers have pulled back somewhat on spending despite income gains, thereby setting the stage for potentially stronger spending gains in coming months. After-tax incomes in January — which include benefit payments from the government and business income as well as wages — climbed by the most in a year. They were boosted, in part, by the Trump administration's tax cuts and company bonuses that were paid out in response to corporate tax cuts.

And manufacturers expanded at the fastest pace in nearly 14 years in February, according to a survey of purchasing managers.

The housing market, too, remains generally solid, with demand for homes strong in much of the country, though rising mortgage rates may begin to slow sales.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 21315

Reported Deaths: 890
CountyConfirmedDeaths
Hennepin7168539
Ramsey243797
Stearns195012
Nobles14692
Anoka121056
Dakota110235
Olmsted56210
Washington52729
Kandiyohi4681
Rice3862
Clay37324
Scott3582
Wright2531
Sherburne2142
Todd2040
Mower1891
Carver1742
Benton1672
Steele1410
Martin1255
Blue Earth1151
St. Louis11113
Freeborn930
Pine850
Winona7815
Carlton730
Nicollet695
Cottonwood640
Otter Tail600
Polk592
Watonwan560
Crow Wing561
Goodhue552
Itasca537
Chisago481
Dodge440
Chippewa420
Meeker420
Le Sueur411
Jackson390
Morrison380
Becker370
Murray350
Lyon340
Douglas290
Isanti280
McLeod270
Waseca250
Unassigned229
Rock210
Mille Lacs171
Fillmore171
Swift160
Wabasha160
Brown122
Beltrami120
Faribault120
Sibley120
Wilkin113
Cass112
Kanabec111
Norman110
Pipestone100
Marshall90
Pennington90
Pope80
Aitkin60
Wadena60
Koochiching60
Yellow Medicine60
Renville50
Mahnomen51
Lincoln50
Clearwater30
Big Stone30
Traverse30
Lac qui Parle30
Red Lake30
Redwood30
Grant20
Houston20
Roseau10
Hubbard10
Lake10
Kittson10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 17533

Reported Deaths: 456
CountyConfirmedDeaths
Polk3774108
Woodbury262424
Black Hawk168239
Linn93575
Marshall87011
Dallas85714
Johnson6027
Muscatine54539
Wapello5144
Crawford4862
Tama39423
Scott3379
Louisa3347
Dubuque32316
Jasper25616
Buena Vista2430
Pottawattamie2126
Sioux2070
Washington1808
Wright1220
Allamakee1184
Plymouth1160
Warren1110
Story951
Poweshiek888
Mahaska856
Bremer676
Henry611
Clinton601
Des Moines551
Boone550
Cedar461
Guthrie433
Taylor390
Benton371
Jones360
Clarke350
Iowa330
Monroe334
Osceola320
Buchanan320
Shelby310
Clayton303
Marion290
Webster271
Hamilton260
Fayette260
Monona240
Madison241
Winneshiek230
Lee220
Cerro Gordo221
Davis200
Grundy190
Lyon190
Harrison190
Jefferson180
Floyd181
Mills160
Cherokee160
Butler150
Delaware150
Keokuk140
Greene130
Sac130
Hardin130
Humboldt130
Ida130
Howard120
Jackson120
Appanoose123
Hancock120
Audubon111
Cass110
Van Buren100
Clay100
Page100
Winnebago100
Carroll90
Dickinson90
Franklin80
Adair80
Chickasaw80
Emmet70
Union70
Kossuth70
Unassigned60
Lucas60
Montgomery60
Adams50
Ringgold40
Fremont40
Mitchell40
Pocahontas40
Palo Alto30
Worth30
Calhoun20
Wayne10
Decatur00
Rochester
Broken Clouds
63° wxIcon
Hi: 78° Lo: 62°
Feels Like: 63°
Mason City
Few Clouds
65° wxIcon
Hi: 78° Lo: 65°
Feels Like: 65°
Albert Lea
Scattered Clouds
64° wxIcon
Hi: 75° Lo: 65°
Feels Like: 64°
Austin
Scattered Clouds
66° wxIcon
Hi: 79° Lo: 65°
Feels Like: 66°
Charles City
Scattered Clouds
66° wxIcon
Hi: 79° Lo: 65°
Feels Like: 66°
Storms a brewin'
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Weather 5/25

Image

Honoring Veterans During a Pandemic

Image

Loud Mouth Brass Band spreads cheer to residents in Slattery Park

Image

Finding the silver lining during the pandemic

Image

Will Memorial Day cause a coronavirus spike?

Image

Can you catch Covid-19 from mosquitos?

Image

125 Live Restaurant partnership

Image

Taps in City Park

Image

100 Most traveled days in MN have begun

Image

Parade in the park

Community Events