According to the Associated Press, employers in the United States added 242,000 workers in February, defying expectations because of a turbulent global economy. These employment increases helped keep the unemployment rate at a low 4.9 percent. The AP says that 228,000 jobs have been added in the last three months.
With global stock markets and economies overseas seeing tough times, some Americans were worried about a recession returning. However, these employment increases indicate otherwise.
“Neither global headwinds, financial turbulence nor political uncertainty has dimmed American business’ enthusiasm for hiring,” said Sal Guatieri, a senior economist at BMO Capital Markets. “The solid jobs report should allay recession fears.”
Jobs have been coming from all parts of the economy. Retailers, restaurants, health care providers and construction have had strong gains. Retailers added 54,900 jobs last month, restaurants and bars added 40,200, the health care sector 38,100 and construction companies 19,000. These types of jobs increase because they are directly related to consumers. Jobs associated with manufacturers and the fossil fuel industry may not fare so well.
Lower unemployment over the past few years led the Federal Reserve to increase the benchmark rate for short-term lending. Employment increases recently could mean another increase this summer.
“It’s probably a better than a 50 percent proposition that they will raise the rates in June,” said Kevin Logan, chief U.S. economist at the bank HSBC.
New jobs mean more consumption. Spending at restaurants increased over the last year by 6.1 percent.
According to the National Association of Realtors, home sales of existing homes rose 0.4 percent last month. That brought the seasonally adjusted annual rate of home sales to 5.47 million. In 2015, sales had been their highest in nine years.
If you are a potential homebuyer but have been worried about the global economy, these employment increases should ease you! Contact one of our agents today to check out RE/MAX Paradise’s beautiful Miami homes.