US Adds 235,000 Jobs In February, Beating Expectations But Earnings Disappoint

Tyler Durden's picture

The US economy added 235,000 jobs in February, beating upward revised expectations of 200K, in-line with whisper expctations of 233K. Last month's report was upward revised from 227K to 238K with the net addition for the past two months coming to +9K.

Nonfarm private payrolls rose 227k up from 221k prior and above the estimate of 215k. Manufacturing payrolls rose 28k after rising 11k in the prior month; this also beat the +10k consensus estimate.

The unemployment rate stayed at 4.7%, while the labor participation increased fractionally from 62.9% to 63.0%. In February, the number of people not in the labor force declined by 176K to 94,190K, the lowest since April 2016 as more Americans are returning to the labor force. Additionally, the number of people who "currently want a job" declined to only 5,597K.

The Underemployment rate came in at 9.2%, down from 9.4% in January.

And while the headline data was stronger than expected, the growth in average hourly earnings disappointed again, rising 0.2% M/M, below the 0.3% increase expected, following last month's disappointing 0.1% increase. Still, on a year over year basis, average hourly earnings rose 2.8%, in line with expectations. Similarly, average weekly earnings also rose by 2.8%, slightly better than expectations.

The bottom line: the number is good enough for the Fed to hike next Wednesday, although for those looking at earnings to provide color on the pace of future rate hikes, they may have to wait until the next jobs report.

More details from the report:

Total nonfarm payroll employment increased by 235,000 in February. Job gains occurred in construction, private educational services, manufacturing, health care, and mining.


In February, construction employment increased by 58,000, with gains in specialty trade contractors (+36,000) and in heavy and civil engineering construction (+15,000). Construction has added 177,000 jobs over the past 6 months.


Employment in private educational services rose by 29,000 in February, following little change in the prior month (-5,000). Over the year, employment in the industry has grown by 105,000.


Manufacturing added 28,000 jobs in February. Employment rose in food manufacturing (+9,000) and machinery (+7,000) but fell in transportation equipment (-6,000). Over the past 3 months, manufacturing has added 57,000 jobs.


Health care employment rose by 27,000 in February, with a job gain in ambulatory health care services (+18,000). Over the year, health care has added an average of 30,000 jobs per month.


Employment in mining increased by 8,000 in February, with most of the gain occurring in support activities for mining (+6,000). Mining employment has risen by 20,000 since reaching a recent low in October 2016.


Employment in professional and business services continued to trend up in February (+37,000). The industry has added 597,000 jobs over the year.


Retail trade employment edged down in February (-26,000), following a gain of 40,000 in the prior month. Over the month, job losses occurred in general merchandise stores (-19,000); sporting goods, hobby, book, and music stores (-9,000); and electronics and appliance stores (-8,000).


Employment in other major industries, including wholesale trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government, showed little or no change over the month.


The average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours in February. In manufacturing, the workweek was unchanged at 40.8 hours, and overtime remained at 3.3 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls has been 33.6 hours since August 2016.


In February, average hourly earnings for all employees on private nonfarm payrolls increased by 6 cents to $26.09, following a 5-cent increase in January. Over the year, average hourly earnings have risen by 71 cents, or 2.8 percent. In February, average hourly earnings of private-sector production and nonsupervisory employees increased by 4 cents to $21.86 in February.


The change in total nonfarm payroll employment for December was revised down from +157,000 to +155,000, and the change for January was revised up from +227,000 to +238,000. With these revisions, employment gains in December and January combined  were 9,000 more than previously reported. Monthly revisions result from additional reports received from businesses since the last published estimates and from the recalculation of seasonal factors. Over the past 3 months, job gains have averaged 209,000 per month.

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Shocker's picture

This is great news,
We still have a long ways to go, but lets get this country back on the right path.

Hiring List:
Layoff List:


remain calm's picture

Buy stocks, nothing else to do

Hal n back's picture

Atlanta Fed: 1.2% GDP

inventories down

retail sales down



where are these folks working?

woait til Trump starts cutting boated headcounts in Govt, then automates there.


stizazz's picture

Agree. Just a drop in the bucket 0f 100 million Americans not working. Things will get worse.

sportofkings's picture

When has the Atlants Fed's tracking model EVER been accurate?

Hal n back's picture

The feds gdp forecast has been consistently overstated for at least 15 years.

But then they are using 2% for inflation when cpi and ppi are over 5% and shadow stats and chapwood are 10%.

So if they used the right numbers we would be in a multi year depression with zero interest rates which did not help so why not raise rates.

saveUSsavers's picture

CORRECT! I doubt the deflater has been 2% for long, it was .7% while real inflation 4+%

so GDP been in CONTRACTION for years, the biggest "positive" imput to GDP has been DEBT!

spastic_colon's picture

yes but no rate hike in march; janet will wait until closer to her leaving for next hike; the narrative is still intact; save all equity pumps until friday jobs numbers while she is still around.

eclectic syncretist's picture

Hey! As long as it all expands at a slower rate than inflation the Fed's wealth transfer mechanism is still working just the way they intentionally designed it to do, screwing everyone but the Banksters.

With inflation running at 6% and wages growing <3% the stealth theft of the people earnings is alive and well in the land of the free and the home of the brave.

Edmund Dantes's picture

and all that stolen money goes straight  to Israel

Paul Kersey's picture

"where are these folks working?"

They are working to build too many apartment buildings, nationwide, and they are working in the health care industry. Aging baby boomers have medicine cabinets that look like small drug stores, and they spend a lot of time in the doctor's office in order to keep their prescriptions coming and the drugs flowing.

Hal n back's picture

apt construction slowing down. Health Care, remote health care centers attached to the hospital chains are popping up as if they were bank branches and CVS and Walgreen locations.

Could not agree with you more on the prescription issue.

Look at the TV commercials--one after anther, with all the disclaimers and qualifications. People don't care, give me my meds.

I try to avoid meds of any type, even when I have a virus or flu (which I get more now with grandchildren).  The body as is should be able to fend off most everythig and if you take meds regularly, your problems are deeper than thought.


Social Security System is not so bad as the higher age from Clinton years and disregarding of real inflation put tha back in good shape. Too bad the gov is not honest about the CPI and COL


Medicare and Medicaid another issue--there s/b a present value cost of future benefits for Medicaid.

same for prescriptions  and Obamacare. I'd like to see the real cost of Obamacare-ignoring the lowering of cost due to taxes and penalties and higher premiums (my wifes premium went up 96% that first year) higher deductibles and in network reductions.

I am a firm believer in the phrases that ""there is no such thing as a free lunch"   and ""if it sounds tooo good to be true, it is"".


Govt does not have the decency to be honest with its consituents. Its nicer to criminals and immigrants. With the constituents money.

another saying--its nice to be nice with OPM





Putrid's picture
Putrid (not verified) remain calm Mar 10, 2017 10:01 AM

Buy gold, there's nothing else to do

And that's not a flippant statement. Stocks carry very serious downside risk at the moment; Rates aren't being raised because the economy is healthy. The competing system is trying to build momentum behind gold price.

The Fed knows this as well as the New York banks; so they're actively trying to magnet money back into the dollar thereby counteracting official outflows (net trade deficit) and secret flows out of the dollar.

There are other reasons why stocks are a horrible option ... but too lengthy for comment section.

Putrid, see

stinkhammer's picture

when it's time to relax, one beer stands clear

Wulfkind's picture

Burger flippers

Pole dancers

Table bussers


Illegal alien temp help

In many of these new jobs are second jobs and temp jobs?

thunderchief's picture

No more excuses Janet,  no more gum flapping. 

Start jacking rates. 

Time to lay in the bed you made.

We are waiting.   

SallySnyd's picture

Here is an article that looks at how wildly inaccurate the Fed’s unemployment rate projections have been since the beginning of the Great Recession:


What is particularly concerning is that the FOMC is using their inaccurate projections to push interest rates higher at a very late stage of the current economic expansion.

eclectic syncretist's picture

They have to prop that petrodollar up as much as they can before Trump and the flagging economy run it back down, so that they can use the power of their insider status to steal even more of your money.

loves the truth's picture

Never did and NEVER will trust the Government reports of any kind


MuffDiver69's picture

Good me next year at this time...The economy will grow on deregulation alone...

LawsofPhysics's picture

Looking forward to all that lead-tainted water I see.  Good for you!

jmack's picture

yea, cuz all the regulation really kept the lead out of Flint and many other municipalities.  


     Bigger government, more regulation, does not ensure safer living and work places.   Just as smaller government, less regulation does not ensure more dangerous living and work places.  there are an assortment of other variables in the calculation, one primary variable is competent, accountable, transparent government workers and elected officials.  Large unconstrained, unconfronted government is never competent, accountable or transparent, as should be very obvious after the last 8 years, and the past 2 months of the new administration.  Now with an administration besieged by a confrontational press, any and every thing is questioned and confronted, challenged and debated.

LetThemEatRand's picture

"Now with an administration besieged by a confrontational press, any and every thing is questioned and confronted, challenged and debated."

Except growing the MIC budget and the deficit in general.  Those seem to be issues the two supposedly confrontational teams can always agree to.

eclectic syncretist's picture

The dealer always gets a kickback.

Wulfkind's picture

That's because they ignored the regulation.

Both sides are lawless.....but keep voting for them, ok?


MuffDiver69's picture

OK....Look at mining,energy and construction numbers

Wulfkind's picture

Great....every boom/bust sector held together by Ponzi financing.  And as I stated above....particularly construction....illegal alien temp jobs.

Once again....these numbers are bullshit

Racer's picture

That's a lot of imagination

LawsofPhysics's picture

"Earnings?"  Who needs to actually do real work and earn anything when you have access to free money (ZIRP/NIRP)....

See the problem yet?

Racer's picture

Must be keen to raise rates and dump the economy and blame it all on Trump

MuffDiver69's picture

Every 1% equals two hundred billion in debt

Seasmoke's picture

So one month of QE ?  Mr. Yellen can handle that. 

VinceFostersGhost's picture



blame it all on Trump


Dude.....that was suppose to be a secret!!!

The Real Tony's picture

Equals about two hundred thousand dolllars in found extra interest income a year for me. Hang Bernanke!!

ejmoosa's picture

Twelve month Rate of job growth year over year is now down 0.39%...


VarenneRiver's picture

What exactly are "earnings" in the face of future tax liabilities / wealth dilution via QE.
They should call them survival rations.

MuffDiver69's picture

Tee up Fake News stories with mother of twelve starving in Appalachia

LawsofPhysics's picture

People starving in Appalachia?  Where the fuck you been?  That is very old news!  Some things just never change.

BadDog's picture

Anyone who believes that the REAL uneployment rate is 4.7%, I have a bridge for sale. 

RawPawg's picture

ain't buying into this hype

my plans are still on for obtaining more AU,and Ammo

that storm is still coming

rejected's picture

Looks like Trumps cozying up to the establishment worked!.

Everything has been fixed!


BigFatUglyBubble's picture

Trump said the numbers in last admin were cooked but now you accept them as gospel?

Sequoia's picture

At least AU and ammo are getting cheaper

Apple10's picture

Just watch the bond market.  If is was bad data, bonds would have rallied.

Honest Sam's picture

If the creators of these numbers ate nails, they would shit corkscrews.