Job Gains Ease Recession Worry

US employeers add 242,000 jobs, but wages decline slightly; March rate hike unlikely.

U.S. employers are shrugging off fears of an economic downturn.

The nation’s job growth rebounded in February as nonfarm payrolls rose by 242,000 and the prior two months were revised up by 30,000, the Labor Department said Friday. The unemployment rate held steady at 4.9% as more Americans jumped into the job market, pushing labor-force participation to its highest rate in a year.

The latest report “should dispel notions of an impending recession,” said Omair Sharif, strategist at SG Americas Securities, adding that it underscores a resilient economy that “continues to weather global headwinds.”

Still, the month’s performance showed some softness under the surface: Americans’ wages fell from the prior month and their workweek declined, a potential sign of reduced spending power. And sectors tied to weak commodities and energy prices continued to shed jobs.

The weak wage performance and broader global uncertainty will likely keep the Federal Reserve from raising interest rates at its March 15-16 meeting, economists said, though continued labor-market gains could bolster the case for moving as soon as April.

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