Hiring stayed steady and wage growth cooled last month, leading experts to predict that the economy is moving towards a “soft landing” that could bring down inflation without a recession.
In a statement, the Bureau of Labor Statistics said employers added 275,000 non-farm jobs in February and the unemployment rate increased to 3.9%. In the household survey, the number of unemployed people increased by 334,000 to 6.5 million. A year earlier, the jobless rate was 3.6% and the number of unemployed people was 6 million.
The Wall Street Journal reported that wage growth slowed in February and the Goldilocks report backed up the Federal Reserve’s outlook that lower interest rates could be possible later this year.
Stocks rose following the report, but then eased and treasury yields held recent declines, a sign that investors believe rate cuts could be coming. Federal Reserve Chair Jerome Powell had previously been negative about the idea of a rate cut at the central bank’s meeting later this month, but he recently told lawmakers that the Fed is seeking more certainty that inflation is sliding closer toward the central bank’s target before it begins easing monetary policy.
