QQQ - February Jobs Report: Continued Normalization Should Keep Fed Sidelined

2024-03-08 14:00:45 ET

Summary

• The economy generated 275,000 jobs in February, stronger than expected, but the unemployment rate rose to 3.9%.
• The increase in the unemployment rate is due to new entrants to the labor force, particularly among 20- to 24-year-olds.
• The labor market is normalizing, but no signs of requiring the Fed to reduce rates.

Earlier today, the Bureau of Labor Statistics released the February nonfarm payroll report . The report showed that the economy generated 275,000 jobs in the month of February, which was stronger than expected, but the unemployment rate rose to 3.9%. Part of the offset in the strong jobs report was the downward revisions of the December and January reports by a combined 167,000 jobs. As it stands, the labor market is continuing to normalize, but not showing any signs of requiring the Fed to reduce rates....

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