Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images
- The labor market added 678,000 jobs in February, driving the unemployment rate down to 3.8 percent from 4 percent in January, the lowest level since the start of the pandemic. However, wage gains have stalled after historic gains, and are being wiped out by high inflation. [Wall Street Journal / Josh Mitchell]
- The strong employment numbers are a good sign for the labor market and reflect a rebound from the latest wave of Covid-19 infections due to the omicron variant — and post-pandemic recovery overall. But employment is not yet back to pre-pandemic levels, and many people need to negotiate child care and health concerns. [NPR / Scott Horsley]
- The employment boom isn’t hitting everyone equally; the unemployment rate for Black women rose from 5.8 percent to 6.1 percent in February from the previous month. Their participation in the workforce also decreased by .2 percentage points last month. [NBC / Hannah Miao]
- Nevertheless, the positive jobs numbers are part of the calculus that goes into the Federal Reserve’s decision to raise interest rates in an effort to combat inflation. The Russian invasion of Ukraine has shaken global markets, potentially causing the Fed to soon increase rates by .25 percent instead of the .5 percent initially predicted. [Reuters / Lucia Mutikani]
- Fed Chair Jerome Powell said Thursday that “hindsight says we should have moved earlier” on rate increases. [The Hill / Sylvan Lane]