60,000 jobs lost in February, but I won’t let that rain on my parade.
After reading over what I had to say about the BLS report last month, I realize now that I sounded a bit pessimistic. Telling you to stay in bed on the first Friday of every month from now on because the payroll numbers wouldn’t be worth looking at, that was melodramatic of me. That’s not to say that I wasn’t right. (Because, for the record, I was.) It’s just that there are worse things to wake up to in the morning than a few lost jobs. Allow me to set up an analogy here while you ponder inappropriate responses to my last comment.
For argument’s sake, we’ll say that the current state of the U.S. economy is like a large bruise. And the employment situation report from February is the equivalent of someone kicking that bruise…really hard. The action doesn’t leave a fresh mark, but it still hurts like hell. And the entire experience convinces you of the fact that the person who kicked you is cruel, and may have no soul. The kicker in this metaphor will remain unnamed. And that, my friends, is me being positive. I know what you’re thinking, I put a whole new spin on optimism.
Anyways, let’s get on with the ugly details, because I’ve got happier things to fill my Friday afternoon with…like sunshine, rainbows, maybe even some ice cream. The U.S. lost 63,000 jobs in February, which means that I’m going to need a cone piled high with Cookie Dough Delight directly after writing this post.
All joking aside, the payroll numbers from last month were pretty miserable, with only a few economic bright spots to fall back on. December and January’s numbers were also revised, and not in a good way. December shifted from +82,000 jobs to +41,000, making the month’s overall progression go a little something like this: +18,000 to +82,000 to +41,000. Even if you don’t enjoy the news they’ve been releasing lately, you’ve got to love the Bureau of Labor Statistics for making everyone else look a little less indecisive. January’s employment situation, on the other hand, suffered a minor drop from -17,000 positions to -22,000.
The country’s unemployment rate now comes in at 4.8 percent, with the employment-population ratio holding steady at 62.7 percent. The average workweek in February remained unchanged at 33.7 hours, and our average hourly earnings rose by another five cents. That puts the average weekly earnings of Americans at just under $600. Over the last year, the nation’s hourly and weekly earnings have increased by 3.7 percent.
If you want to better understand the job losses that occurred in February, you should look at the breakdown of the industries first. The manufacturing sector lost a whopping 52,000 jobs last month, with significant losses in areas such as motor vehicles and parts (-13,000), furniture (-6,000), and wood products (-5,000). Retail trade felt a hit as well, dropping 34,000 positions in February. Construction employment continued to trend downwards, with 39,000 jobs lost last month. Since September of 2006, the construction industry has dropped over 330,000 positions. Residential specialty trades and residential building are two sectors that have suffered considerably during the industry’s downturn.
The health care industry was able to add 36,000 jobs over the course of February, and its biggest gains came in ambulatory health care services (+14,800 jobs) and hospitals (+16,500 jobs). Food services and drinking places gained close to 20,000 positions as well. Similar to what I gathered after browsing through January’s BLS report, February’s numbers leave me with only one conclusion: the strength of our economy lies in the service sectors right now. The service-producing industry as a whole added 26,000 jobs in February. Conversely, the players in the goods-producing industry generated a deficit of 89,000 positions last month. This is the primary reason why our payroll numbers suffered so much in February.
At this point, you may be wondering what I, with all my unofficial expert wisdom, think of this whole situation. Well, if the service industry picks up a bit in March, and the manufacturing and retail sectors recover somewhat over the next few weeks, the country’s employment picture could get a whole lot prettier by the time April hits. Oh, and if you’re the type of person who prefers stability, get a degree in health care. There, that was rather hopeful, now wasn’t it?