Non-farm Payrolls Increased by More than Expected

U.S. nonfarm payrolls increased by 235k in February after January’s 238k increase which was revised from 227k,  This compared to expectations of 190K for February, while December’s 157k rise was bumped to 155k for a net 9k gain. The unemployment rate fell to 4.7% versus 4.8% previously. The labor force rose 340k after the prior 76k gain, while household employment bounced 447k from -30k. Average hourly earnings edged up 0.2%, the same as in January which was revised from 0.1%. The labor force participation rate rose to 63.0%.

The components show that total private payrolls surged 227k, with the goods producing sector adding 95k. Manufacturing jobs rose 28k, with construction up 58k. Jobs in the service sector increased 132k, while the government added 8k. Retail was the only sore spot. Yields moved higher across the curve with the 10-year climbing 2-basis points from 2.59% to 2.61%.  The dollar continued to gain traction against the yen, but lost ground against the Euro.

Canadian Payrolls Were Better Than Expected

Canada also released its payroll numbers on Friday.  Canada’s employment grew 15.3k in February after 48.3k gain in January. The increase was contrary to the median of a decline of 5.0k. Full time employment surged 105.1k after a 15.8k gain. Part time fell 89.8k after a 32.4k increase. The participation rate fell to 65.8 from 65.9. The unemployment rate declined to 6.6% in February from 6.8% in January.