Market Commentary

February Jobs

handshake for job

This morning the official jobs report for February was released and the number was much bigger than the experts estimated at 313,000. They were off by about 100,000. The previous two months were revised as well by an increase of 54,000. Surprisingly the unemployment rate did not change and salaries in this tight labor market fell year over year from 2.8% increase to 2.6%.

The FED will be raising interest rates this month but without inflation some of the pressure to increase them faster or higher is off.  The expectation is still three times for 2018 at a quarter percent each but there was speculation about a possible four times.

The labor market is tight so look in the coming months for increases in salaries because that is what the FED will be looking at to decide on the next rate increase.

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