This ARTICLE On Jobs Report Numbers For February At 273,000 Despite Market Selloff Was PUBLISHED On March 7th, 2020
Record jobs report numbers for February were announced at 273,000 new jobs added in the U.S. This was great news despite the coronavirus outbreak uncertainty continues. The stock market selloff continues due to the fear and uncertainty of the coronavirus.
Jobs Report Numbers For February At 273,000 Is A Continuation Of Growing Employment Numbers
With the coronavirus outbreak shaking economic confidence, the solid showing in February may not be a harbinger of continued strength. Still, the report from the Department of Labor offered a refreshing breath of positive economic news. Employers expanded payrolls by 273,000 jobs in February, while revisions to data from previous months added 85,000 more jobs to the tally. The jobless rate ticked down to 3.5 percent.
Look at the chart below:
Jobs Report Numbers For February At 273,000 Versus Stock Markets
The February jobs report shows proof the U.S. economy is growing and fundamentally strong going into the coronavirus outbreak. In the past six months, monthly payroll gains averaged 231,000. The average numbers for the previous six months — March through August 2019 — was just 171,000.
President Donald Trump tweeted the following after the job numbers were released:
“JOBS, JOBS, JOBS!!!” President Trump wrote on Twitter.
Michael Gracz of Gustan Cho Associates said the following:
Every jobs report looks backward, but February’s report captures a particularly unusual moment before the market was gripped with anxiety about the global impact of a widening epidemic. There is a red line on the calendar. The value of it is that this report gives us kind of a benchmark of where we were before things began to go wrong. The government’s estimate of payroll increases is based on surveys of companies completed by the middle of the month, when the prevailing sentiment was that the United States would remain relatively unaffected. A clearer picture of the impact from disrupted supply chains and travel, entertainment and dining plans should emerge over the next couple of months.
Industries Affected By The Coronavirus Outbreak
Will the job numbers continue to grow as it has in the past few months? Will earnings be affected? Will companies lay off workers? All of these questions have no definite answers. This is why the financial markets are so volatile. Everything depends on how serious the coronavirus outbreak is. There is no vaccine for this serious viral disease. More cases and deaths are being reported. Travel restrictions are being placed by governments both the U.S. and other countries. A downturn in employment is expected for those in the transportation, hospitality, entertainment, and travel. Airlines are the most affected. United Airlines said the company implemented a hiring freeze effective immediately through June 2020. United Airlines also suspended all pay increases and promotions until further notice.
The number of canceled or postponed conferences is racking up, which hurts not only hotels and convention centers but also restaurants and stores that cater to those visitors. Layoffs are here. But so far deep dents in employment seem more feared than real.
Small Local U.S. Businesses Being Affected
The longer the coronavirus scare lasts, the more impact it will have on U.S. companies, workers, and consumers. Many suppliers of U.S. businesses are in China. There are countless of providences in China who have shut operations of their companies due to the coronavirus outbreak. This affects U.S. businesses with getting parts thus impacting their revenues. Experts and economists predict and expect that more and more businesses will be affected by the coronavirus in the days, weeks, and months to come.
Will Strong Jobs Report Numbers Continue?
Will the strong Jobs Report Numbers continue? Will layoffs and unemployment numbers rise? Will companies shut down due to plummeting revenues? These are scary questions with no answers. The public should not panic. Fear is what drags the economy down. 2020 housing market forecast is expected to be stronger than ever due to low mortgage rates. Whenever the stock markets and yields on the 10-year Treasury plummets, mortgage rates drop. However, if homebuyers are worried about their job security and a recession, they will hold off buying a home no matter how low interest rates are.
The remarkable payroll gains last month were all the more surprising since cooling job creation is to be expected during the 11th year of an economic expansion. There were a few signs of weakness in the report. Wage growth, which was already slowing from last year’s peak, was less impressive. Average hourly wages were up 0.2 percent, bringing down the year-over-year gains to 3 percent. The first impact from the coronavirus on the labor market was likely to show up in reduced hours for service workers. Entertainment, hospitality, food and lodging, service jobs — they won’t lose their jobs but will probably get a cut in hours.
The good news is the Trump Administration is taking proactive steps in battling the coronavirus outbreak. President Trump appointed Vice President Mike Pence as the Czar for the Coronavirus Outbreak. More than $8 billion dollars were set aside to battle the coronavirus. Fed Chairman Jerome Powell announced an emergency 50 basis point interest rate cut. 2020 mortgage interest rate forecast mortgage rates will hit historic lows this year going into 2021. This is a developing story. Gustan Cho Associates will keep our viewers posted as new updates develops on this topic. Stay Tuned!!!
March 7, 2020 - 6 min read