Economics

U.S. Payrolls Shock Suggests Dawn of a Long-Forecast Slowdown

  • Weakest job growth since 2017 missed all economist estimates
  • Wage gains signal tighter labor market still benefits workers
U.S. nonfarm payrolls increased by 20,000 in February and the jobless rate fell. Bloomberg’s Kevin Cirilli reports.Daybreak: Americas." (Source: Bloomberg)
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The U.S. labor market may not be as weak as February’s payrolls number suggested, but the report provides a reality check that a long-forecast slowdown is arriving.

Employers added 20,000 jobs during the month, the fewest since September 2017, missing all economist estimates and bucking a recent trend of strong February readings. Analysts said the unexpectedly low figure doesn’t mean conditions rapidly deteriorated -- citing weather effects and payback from outsize gains in prior months -- but they pointed to the likelihood of a moderation in job gains this year as economic growth cools.