Employment numbers decline) But Easing Worries

Iinvestor's Business Daily ^ | 12 March 2007 | SCOTT STODDARD

[shrinkermd]

Pay Hikes Boost Consumer Builders, factories ax staff but services hiring solid; jobless rate dips to 4.5%

The U.S. economy in February created the fewest jobs since January 2005, the Labor Department said Friday, but continued hiring, and solid wages suggest consumers will remain strong.

Employers added 97,000 people to nonfarm payrolls in February. That was in line with views.

Also, in what’s become routine, Labor revised up jobs for the prior two months, this time by 55,000. And average hourly pay jumped nearly 0.4% last month.

“This report suggests that the labor markets are still strong and may be tightening and you’re still getting good salary growth,” said Richard Yamarone, chief economist at Argus Research.

The jobless rate ticked down to 4.5%, near a five-year low. But that’s because more people left the labor force, according to the separate household survey.

The 10-year Treasury yield shot up 8 basis points to 4.60%, the biggest gain since December. Fed funds futures suggest the market sees less of a chance the Federal Reserve will cut interest rates to prop up the economy.

[shrinkermd]

It used to be employment is a lagging economic indicator.

[Chode]

i don't know anybody without a job except a few ratbags that don't/won't work.

[expat_panama]

It used to be employment is a lagging economic indicator.

So what bignews is saying is that we've had the worst economy since Hoover for six years and the reason unemployment is low is that-- because--- ah...