US non-farm payrolls edge past forecasts in February
US non-farm payrolls rose by 295,000 in February, despite the severe winter weather, although total average hourly earnings rose by less than expected.
The consensus estimate was for a 235,000 person increase in payrolls.
The government’s estimate for the rise in payrolls over the previous two months was revised lower by 18,000, according to the Bureau of Labour Statistics.
The unemployment rate fell by two tenths of a percentage to 5.5%, from 5.7% in the prior month (consensus: 5.6%).
The widely-watched labour force participation rate edged lower by one tenth of a percentage point to 62.8%.
Hiring in services strongest
Job creation in the services sector picked up significantly last month, to reach 259,000, versus 173,000 in January and another 255,000 in December.
The goods-producing sector saw a 29,000 increase in staffing levels, down from a 49,000 person gain in the month before.
Average hourly earnings increased by 0.1% month-on-month in February (consensus: 0.2%), after a 0.5% gain in the prior month.
The number of average weekly hours held at 34.6.
Earlier on the day some reports had indicated that the release of the data might be delayed by up two hours due to snow on the eastern seaboard of the US.
Commenting on the data, Craig Erlam, Senior Market Analyst at Oanda, said hourly earnings may be a minor issue.
He added: “but with the unemployment rate now at the upper end of the range that is deemed full employment, it’s surely only a matter of time until we start to see some significant wage growth.”
“I think the June meeting may just come a little too soon and with wage growth not quite taking off yet, I still believe that the Fed will wait until September to act.”
Christian Schulz at Berenberg Bank is a tad more hawkish. He anticipates a first increase - of 25 basis points - in the Fed funds rate in July.