U.S. Tops Estimates With 678,000 Jobs Added in February

In February, 678,000 jobs were restored, surpassing expectations of 421,000. The unemployment rate fell to 3.8%, returning to December levels. Despite a tight labor market, average hourly earnings remained flat, with a yearly increase of 5.1%. This is unusual given the minimum wage hikes in 21 states and typical January raises. The Fed sees this as a positive sign, indicating no wage price spiral. Labor force participation increased slightly, suggesting a return to the workforce post-omicron.

How many jobs were restored in February, and how does this compare to the forecast?

• 678,000 jobs were restored, matching the forecast.

• 500,000 jobs were restored, falling short of the forecast.

• 421,000 jobs were restored, matching the forecast.

• 678,000 jobs were restored, exceeding the forecast of 421,000.

What was the unemployment rate in February, and how did it compare to December?

• 4.2%, which was lower than December.

• 4.0%, which was the same as December.

• 3.8%, which was higher than December.

• 3.8%, returning to December levels.

What was the annual increase in average hourly earnings, and why is it considered unusual?

• 5.1%, due to state-level minimum wage increases and January raises.

• 3.5%, due to inflation adjustments.

• 5.1%, due to a decrease in labor demand.

• 4.0%, due to increased productivity.

What was the change in the labor force participation rate, and why is it significant?

• It increased to 63.0%, indicating a rapid recovery.

• It decreased to 61.5%, indicating a shrinking workforce.

• It increased to 62.3%, suggesting more people are seeking jobs.

• It remained at 62.2%, showing stability in the workforce.

How might the Omicron variant have affected the labor force participation rate?

• It had no impact on participation rates.

• It may have kept people home, but they are now returning to the workforce.

• It likely increased participation by encouraging remote work.

• It decreased participation by causing more layoffs.