The Labor Department on Friday reported that the country experienced a fall in job growth in February. The last few months showed a steady growth of 180,000 per month, with solid 304,000 jobs added just in January. However, the falling temperatures and a slowing economy have had their effect – market reports reveal that only a meager 20,000 jobs were added last month.
There is a silver lining to the cloud though. The number of people hired may not be as high as the last three months, the Labor Department has stated that the unemployment rate fell to 3.8 percent from 4 percent in January.
Rising trade tensions with China and a weakened global economy may be the reasons why the job market took a hit this month, not to mention the deep freeze in the midwest. Economists predicted that the first trimester of 2019 will see a plunge after the booming growth in the last 3 months.
The growth rate this year shrunk to just 1 percent, compared to the blockbuster annual rate of 3 percent in 2018. Analysts have suggested that government shutdown and stock market sell-off have adversely impacted February jobs and customer spending, with Americans spending the least in December than they ever did in the last five years.
However, a turnaround is to be expected in the April-June quarter, experts suggest. Hiring has been consistent in the last quarter. Wages grew by 3.4 percent last year, the largest gain since 2009. These are signs that consumers and businesses are gaining confidence in the economy and the situation is not as alarming as it sounds.