Private sector job growth has been relatively steady. It accounts for 142,000 jobs added in January. Government sector jobs however, have declined by 29,000. The unemployment rate has declined from 6.7 to 6.6% and average wages have increased have gone up 5 cents. The labor force also increased by 499,000 increasing the participation rate by 0.2%.
This past months labor statistics aren't all bad but not exactly what the fed wants to see. They promised in 2012 that interest rates would remain extremely low until unemployment came below 6.5%. That time is getting closer and the labor market isn't in the best shape. Over the past year the unemployment rate has decreased by about a percent, but much of that is due to the decline in labor force participation.
Even though positive change can be seen in terms of bringing down the unemployment rate and adding jobs to the economy, The Fed somehow manages to over state expectations not only in terms of job additions but also in growth figures. The problem with this is that when the economy does not perform as expected, stock markets can be affected and it can give the economy a poor outlook, The Fed should be more realistic with their targets so there is less disappointed when results come out.
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