Jeff Cox | @JeffCoxCNBCcom
March 10, 2017
Nonfarm payrolls increased by 235,000 in February and the unemployment rate was 4.7 percent in the first full month of President Donald Trump’s term, the Bureau of Labor Statistics reported Friday.
Average hourly earnings increased by a healthy 2.8 percent on an annualized basis.
Construction led the way, growing by 58,000, the most in almost a decade, while manufacturing also posted strong gains with 28,000 new jobs.
Economists surveyed by Reuters had expected the economy to add 190,000 jobs and the unemployment rate to tick down to 4.7 percent. That contrasts with to the upwardly revised January numbers of 238,000 new positions and an unemployment rate of 4.8 percent.
The numbers come amid heightened expectations for economic growth as the president pushes an agenda of tax cuts, less regulation and higher domestic spending. Earlier in the week, ADP and Moody’s Analytics reported that private payrolls increased by a surprising 298,000.
“You’re getting more strength in the labor market than I would have anticipated,” said John Canally, chief economic strategist at LPL Financial. “There’s been a burst in animal spirits since Trump was elected.”
The total of employed Americans surged by 447,000 to 152.5 million, the highest ever.
Friday’s BLS report sets the stage for next week’s Fed meeting, at which the Federal Open Market Committee is widely expected to approve a quarter-point hike in its target rate to 0.75 percent to 1 percent.
“Hard to see any negative signs in this report,” said Tony Bedikian, head of global markets for Citizens Bank. “This should put the Fed strongly on the table for next week’s potential tightening.”
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