Nonfarm payroll employment was little changed (-36,000) in February, and the unemployment rate held at 9.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment fell in construction and information, while temporary help services added jobs. Severe winter weather in parts of the country may have affected payroll employment and hours; however, it is not possible to quantify precisely the net impact of the winter storms on these measures. For more information on the effects of the severe weather on employment estimates, see the box note at the end of the release.
The fall in construction employment is not surprising. Big drops in existing home sales this year translate into even lower demand for new homes from homebuilders. The increase in temp employment, as the press release notes father down, reflects cutbacks in hours worked by employees who previously worked full time. That means consumer demnd will continue to be slack for some time until prospects for permanent employment improve. This is not good for the prospects of long-term recovery.
Mr. Market is happy that this news is not as bad as expected. Getting a bull market restarted will take reports that are a lot better than this one.
