Mar 8 - Reuters Economics and Markets Editor Dan Burns says the jump in private payrolls and construction employment bodes well for the U.S. economy.
-- very impressive showing for nonfarm payrolls in -- February of big surprise figure 246000. Private payrolls. What's interesting here is is some of the breakdown and components. Sector I was watching particularly close this month. Was the that the change in construction jobs. 48000. New construction jobs that's the most since 2007 before the recession hit. And why is this important well the construction sector helps confirm what we're seeing. And the housing market a lot of economists placing a lot of stock in a recovery in home prices are recovery in the housing market overall. And when we see construction jobs adding that does confirm yelled that the big. Dodd jump in new home sales we saw a couple weeks back is not a head -- that the recovery in housing. Is for real and that was and that's something that's going to be a -- -- for the economy particularly in the face of some things we have coming against it. In the coming months sequestration is a big part of that mixes a lot of questions about. How we're gonna see that. Now rob you know. Run against what we've seen is the big gains. Big drop in the unemployment rate another good forward looking indicator here is we saw that the average hourly works average hourly work week jumped by. A tenth of a point to 34 and a half hours and 34 point four. Why is that leading indicator well you know employers and are reluctant to add jobs so they will continue to add to people's work week. Until such time as they're confident that you know taking on a person not just for the hourly -- -- all that the fringe benefits and payroll taxes associated with addicts every apparel. Is sufficient to overcome -- the -- that they had wind of continually paying them overtime so an extension of the average work week is an indicator. That this gain in employment we've seen over the last several months is probably gonna continue for the near term.