Job Creation Explodes

Mar 8, 2013 by

Job creation broke out in February, with the economy creating a net 236,000 new jobs as the unemployment rate fell to 7.7 percent.

Private job creation stood at a robust 246,000, finally indicating that the economy may be ready to escape the tight growth range in which it has been held since the financial crisis.

Service industries led the gains with 73,000 new jobs, while construction added 48,000 and health care provided 32,000.

Economists expected the economy created 160,000 jobs in February and the unemployment rate held steady at 7.9 percent.

However, there was anticipation that the number could come in a bit better than expected after ADP reported earlier this week that the private sector created 198,000 for the month.

Investors watch the nonfarm payrolls number closely both to gauge general economic health and to discern future Federal Reserve policy moves.

The central bank has kept interest rates near zero for the past four years and is buying $85 billion in Treasurys and mortgage-backed securities each month in an effort to stimulate growth.

Fed officials have said the rate policy will continue at least until unemployment drops to 6.5 percent and inflation rises to 2.5 percent. However, the bond buying, known as quantitative easing, likely will stop well ahead of that if the Fed sees sustained growth signals.

via Job Creation Surges as Rate Falls to 7.7%.

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