U.S. job growth slowed last month; however, the pace in all probability remained consistent with a healthy labor market regardless of the coronavirus epidemic, which kindled financial market concerns of a recession and triggered an emergency interest rate cut from the Federal Reserve.
Though the Labor Division’s closely watched month-to-month employment report Friday won’t fully capture the impact of the novel coronavirus, which spread in the U.S. starting in late February, there are so far no indicators that the epidemic has hurt the labor sector.
The Federal Reserve Tuesday cut its benchmark in a single day interest rate by a half percentage point to a range of 1.00% to 1.25% in Bank of America’s first emergency rate reduction since 2008 at the height of the financial crisis.
Based on a Reuters poll of economists, the government’s survey of institutions will probably show nonfarm payrolls increased by 175,000 jobs last month. While that would be a step-down from the 225,000 jobs added in January, the anticipated gains would match the month-to-month average employment growth in 2019.
The economy must create approximately 100,000 jobs per thirty days to keep up with growth in the working-age population.
Job progress two months ago was boosted by an unseasonably mild climate, which pushed hiring in construction, leisure and hospitality sectors.
The federal government canvassed business in mid-February. About 11 people have died in the U.S. from the respiratory disease named COVID-19 caused by the coronavirus and over 100 have been tested positive.