Economics

U.S. Employers Add 275,000 Jobs in Another Strong Month

Published

2 years ago

April 12, 2024

If the economy is slowing down, nobody told the labor market.

Employers added 275,000 jobs in February, the Labor Department reported Friday, in another month that exceeded expectations even as the unemployment rate rose.

It was the third straight month of seasonally adjusted gains above 200,000, and the 38th consecutive month of growth — fresh evidence that four years after going into pandemic shutdowns, America’s jobs engine still has plenty of steam.

“We’ve been expecting a slowdown in the labor market, a more material loosening in conditions, but we’re just not seeing that,” said Rubeela Farooqi, chief economist at High Frequency Economics.

Previously reported figures for December and January were revised downward by a total of 167,000, reflecting the higher degree of statistical volatility in the winter months. That does not disrupt a picture of consistent, robust increases.

At the same time, the unemployment rate, based on a survey of households rather than businesses, increased to a two-year high of 3.9 percent. The increase from 3.7 percent in January was driven by people losing or leaving jobs as well as those entering the labor force to look for work.

A more expansive measure of slack labor market conditions, which includes people working part time who would rather work full time, has been steadily rising and now stands at 7.3 percent.

In a positive sign, the labor force participation rate for people in their prime working years — ages 25 to 54 — jumped to 83.5 percent, matching a level from last year that was the highest since the early 2000s. The participation rate for those over age 55 remains markedly below its prepandemic level, potentially in part because the booming housing and stock markets have allowed more people to retire.

Average hourly earnings rose by 4.3 percent over the year. Wages have outpaced prices since May, though the pace of increases has been fading.

“We’ve recently seen gains in real wages, and that’s encouraged people to re-enter the labor market, and that’s a good development for workers,” said Kory Kantenga, a senior economist at the job search website LinkedIn. As wage growth slows, he said, the likelihood that more people will start looking for work falls.

As late as last fall, economists were predicting much more modest employment increases, with hiring concentrated in a few industries. Some pandemic-inflated industries have shed jobs, but expected downturns in sectors like construction have not materialized.

The last few months have been studded with strong economic data, prompting analysts surveyed by the National Association for Business Economics to raise their forecasts for gross domestic product and lower their expectations for the trajectory of unemployment. Inflation has eased, leading the Federal Reserve to telegraph its plans for interest rate cuts sometime this year, which many see as insurance should the job market stumble.

Mervin Jebaraj, director of the Center for Business and Economic Research at the University of Arkansas, helped tabulate the survey responses. He said the mood was buoyed partly by fading trepidation over federal government shutdowns and draconian budget cuts, after several close calls since the fall. And there’s no harm, he said, in a tamer but more sustainable pace.

“If we gain 150,000 jobs every month this year, that would still be an incredible year, but it would still be cooling compared to last year,” Mr. Jebaraj said. “And maybe we want both things.”

Moreover, some of the cooling may have allowed for more durable growth. As extreme labor shortages eased and the wave of job quitting subsided, employers unable to win bidding wars for workers have had an easier time filling positions. And as people stick around longer, productivity has improved, which makes it easier to pay more without increasing prices.

Health care and government again led the payroll gains in February, while construction continued its steady increase. Retail, restaurants, transportation and warehousing, which have been flat to negative in recent months, picked up.

No major industries lost a substantial number of jobs. High interest rates continue to suppress manufacturing, however, while credit intermediation continued its downward slide — that sector, which mostly includes commercial banking, has lost about 123,000 jobs since early 2021.

Few businesses are more emblematic of the power behind recent employment gains than home health services for older people, which count 164,000 more jobs than before the pandemic — fully offsetting the decline of nursing and residential care facilities, which have been less popular since Covid-19 ripped through them in 2020.

Elaine Flores is the chief operating officer of Medical Home Care Professionals, an agency in Redding, Calif., that employs 102 clinical staff members and caregivers. That’s up about 20 percent since early 2020, though the net gain underestimates how many people she’s had to hire as experienced providers have left the profession.

“More and more nurses are retiring out,” Ms. Flores said. “That’s probably the most difficult discipline to recruit, and we compete against hospitals, which have beautiful benefits packages that, on home health margins, we can’t do.”

Elevated levels of immigration may help with that problem in the coming years. According to an analysis by the Brookings Institution, the influx over the last two years has approximately doubled the number of jobs that the economy could add per month in 2024 without putting upward pressure on inflation, to a range of 160,000 to 200,000.

That does not mean the employment landscape looks rosy to everyone. Employee confidence, as measured by the company rating website Glassdoor, has been falling steadily as layoffs by tech and media companies have grabbed headlines. That is especially true in white-collar professions like human resources and consulting, while those in occupations that require working in person — such as health care, construction and manufacturing — are more upbeat.

“It is a two-track labor market,” said Aaron Terrazas, Glassdoor’s chief economist, noting that job searches are taking longer for people with graduate degrees. “For skilled workers in risk-intensive industries, anyone who’s been laid off is having a hard time finding new jobs, whereas if you’re a blue-collar or frontline service worker, it’s still competitive.”

Those having a hard time finding steady employment turn increasingly to gig work, Mr. Terrazas noted, which is not picked up in the payrolls data. That has been true for Clifford Johnson, 70, who retired from his accounting job in Orlando, Fla., three years ago and began drawing Social Security.

The outlook changed when Mr. Johnson separated from his husband and had to rent an apartment, which in the hot Orlando housing market costs $2,350 a month. He has not landed another accounting job, and a retail position did not work out. He has run through his limited savings, and for now he drives for Uber Eats full time — even on the weekend — to stay afloat.

“I’m just doing what I can do to make money every day,” Mr. Johnson said. He’s hoping a couple of contract accounting positions come through, since driving that much is physically exhausting. “If you’re 25 or just graduating from college, it’s a lot different than if you’re 70 and still trying to make a living.”

The path forward for the labor market, which few have managed to accurately predict, remains hazy. Every seeming threat so far — including wars, substantial interest rate increases and bank collapses — has been met with unflappability.

Thomas Simons, senior economist at the investment banking firm Jefferies, thinks the economy will look weaker at the end of the year than it does now, despite the lack of any obvious potholes.

“It’s been 30-plus years since we’ve had an economic cycle like this, where we are waiting for enough drag to coalesce between different sectors to take the whole number down,” Mr. Simons said. “I still believe it’s unlikely that it’s going to continue indefinitely, even without a discrete catalyst.”

Economics

UK Has a New Prime Minister Without a General Election

Published

3 days ago

July 21, 2026

Business Finance News

UK Has a New Prime Minister Without a General Election

On July 20, Andy Burnham has been chosen to be the next Prime Minister in UK. The appointment of a new Prime Minister in the United Kingdom often raises questions from people outside the country, especially when no nationwide election has taken place. Many wonder how a new national leader can assume office without voters casting ballots. The answer lies in the UK’s parliamentary system, where the Prime Minister is not directly elected by the public but is instead chosen based on who commands the confidence of the House of Commons.

How the UK Selects Its Prime Minister

Unlike presidential systems where citizens vote directly for the head of government, the United Kingdom elects Members of Parliament (MPs) during a general election. The political party that secures a majority of seats in the House of Commons usually forms the government, and that party selects its own leader to serve as Prime Minister.

If the leader resigns, becomes unable to continue, or is replaced by their party, the governing party can choose a new leader without triggering a general election. As long as the new leader is able to maintain the confidence of Parliament, they can immediately become Prime Minister after being formally appointed by the monarch.

Why No Election Was Required

A general election is not automatically required every time the office of Prime Minister changes hands. The governing party retains its parliamentary majority because voters elected MPs rather than an individual Prime Minister. If the ruling party chooses a new leader through its internal leadership process, the government continues to operate without interruption.

This constitutional arrangement provides stability and allows the government to continue functioning during periods of political transition. It also avoids the expense and disruption of holding a nationwide election every time party leadership changes.

The King’s Constitutional Role

After a governing party elects a new leader, the monarch invites that individual to form a government. This constitutional step is largely ceremonial and follows long-established conventions. The King appoints the person most likely to command a majority in the House of Commons, ensuring continuity of government.

Although the monarch formally appoints the Prime Minister, political power rests with Parliament and the elected representatives of the British people.

Could an Election Still Happen?

Yes. A newly appointed Prime Minister has the authority to request a general election if they believe it is politically advantageous or if they seek a stronger public mandate. Parliament can also reach a point where a government loses the confidence of the House of Commons, potentially leading to an election or the formation of a new government.

In many cases, however, a new Prime Minister continues governing until the next scheduled general election.

What This Means for the UK

The UK’s parliamentary democracy is designed to ensure government continuity while respecting the results of the most recent general election. Leadership changes within the governing party do not automatically alter the composition of Parliament, which is why a new Prime Minister can take office without another nationwide vote.

Understanding this process helps explain why political transitions in the United Kingdom can appear different from those in countries with presidential systems. While the Prime Minister may change, the democratic mandate of Parliament remains in place until voters elect a new House of Commons at the next general election.

Economics

Global Grid Upgrades Reshape Macro Economics

Published

3 days ago

July 21, 2026

Business Finance News

Global grid upgrades reshape macro economics

On July 21, 2026, global economic analysis shifts focus toward a defining structural macroeconomic trend: the massive expansion of public and private capital deployment into high-capacity electrical grid infrastructure. As industrial electrification, automated data center hubs, and renewable energy integration accelerate worldwide, sovereign governments and institutional investors are facing a monumental economic challenge. Updating legacy power grids to meet skyrocketing demand has emerged as a primary driver of long-term capital expenditures and industrial productivity across both developed and emerging market economies.

According to international economic policy updates released this week, grid infrastructure investments are projected to exceed multi-trillion-dollar thresholds over the coming decade. Economic planners caution that without modernized, high-voltage transmission networks, regional manufacturing sectors face severe energy bottlenecks, localized power price volatility, and operational constraints. Consequently, infrastructure spending is rapidly transitioning from passive utility maintenance into a vital component of national economic competitiveness and industrial policy.

The macroeconomic ripple effects of this capital deployment are being felt across global commodity markets and labor networks. High demand for structural industrial inputs—such as copper, aluminum, specialized electrical steel, and high-capacity transformers—has created sustained pricing support for critical material producers. Simultaneously, the specialized technical labor required to manufacture and deploy modern grid hardware is driving wage growth in industrial sectors, adding a complex new layer to central bank disinflation trajectories.

For global policymakers and strategic investors, the economics of energy grid modernization represent a double-edged sword. While massive infrastructure investment boosts short-term gross domestic product (GDP) and strengthens domestic industrial foundations, it requires disciplined fiscal allocation to prevent inflationary crowding-out of private capital. Countries that efficiently streamline grid infrastructure permitting and mobilize private investment will secure lower long-term energy costs, attracting high-tech manufacturing and reinforcing sustainable economic growth.

Economics

Global Trade Realignment and Supply Chains in 2026

Published

4 days ago

July 20, 2026

Business Finance News

Global Trade Realignment and Supply Chains in 2026

The international trade architecture entering the second half of 2026 is undergoing a profound structural pivot. As major sovereign economic blocs adjust to the long-term impact of unilateral tariffs and escalating regional subsidies, traditional globalized supply chains are being rapidly replaced by bilateral trade corridors and regional alliance networks. Data released in late July 2026 highlights a significant divergence: while cross-continental freight volumes between non-aligned partners have cooled, intra-regional trade throughout North America, Southeast Asia, and Eastern Europe has surged to record levels. This shift reflects a broader macroeconomic strategy wherein multinational corporations prioritize geopolitical resilience over pure cost minimization.

The primary economic catalyst behind this regionalization is the proliferation of sector-specific tariffs targeting critical industries, notably battery components, clean energy technology, and advanced semiconductor hardware. In response, global manufacturers have adopted multi-tier sourcing models that distribute production across intermediate partner nations before final assembly. While this strategy successfully bypasses primary import duties, it adds structural layers of logistical complexity and administrative oversight. Economists note that while total output remains robust, aggregate production costs have drifted upward, contributing to persistent baseline inflation across major consumer markets.

Simultaneously, currency settlement patterns within these regional blocs are experiencing a notable transformation. Sovereign central banks and commercial institutions are increasingly utilizing localized currency swap lines and digital clearing mechanisms to settle cross-border trade transactions. This transition reduces direct exposure to foreign exchange volatility and mitigates third-party liquidity constraints, further solidifying regional economic cohesion. However, for developing economies situated outside these primary trading alliances, the tightening of international trade networks presents severe challenges, restricting access to key export markets and foreign direct investment.

For corporate strategists and policy analysts navigating late 2026, success requires a thorough understanding of these emerging trade corridors. Organizations must conduct regular risk assessments of their multi-tier supplier networks, model tariff sensitivities under shifting geopolitical scenarios, and invest in real-time supply chain telemetry. As regional economic blocs strengthen their regulatory borders, supply chain agility and compliance fortitude will distinguish market leaders from vulnerable enterprises in the evolving global economy.