US Job data released on Friday, the 8th of March 2019, displayed that the employment growth of the world’s largest economy had remained almost stalled in February, while the economy created only 20,000 new jobs, widely missing Wall St.
estimation of 1,80,000 new jobs and indicating towards a steep slowdown in the economic activity on first quarter of 2019. Never the less, few analysts were blaming the record 35-day long US government shutdown on February behind the latest weakness in the US job market.
Prefixing further penetration, the US Labor Department’s data revealed on Friday (March the 8th) that the meager payroll gains on February had been lowest since September 2017, although analysts are accusing a sharp drop in the weather-sensitive construction industry behind this unexpected plunge to a one and half year low.
Friday’s (March the 8th) data also winded a weakness in retailer hiring and utility companies, alongside warehousing and transportation sectors, which were experiencing a lack of drivers.
The sharp contraction in the US payroll had been another blow to US President Donald Trump’s America First policy, which had suffered a series of setbacks including a basket of weaker-than-anticipated corporate earnings over concerns of tax incentives, a failed Nuclear talk with North Korean Kim and a record trade deficit.
Addressing to an exaggeration of underlying strength in the US Labor market by US policymakers, alongside White House officials, a Chief Economist at UniCredit Research at New York, Harm Bandholz, said, “We had warned that recent employment gains had overstated the underlying strength of the U.S.
labor market. And the correction now came in February with a bang, rather than spread out over various months”.