Roughly two-thirds of the 242,000 jobs added in February were in lower-paying fields, notes economist Steve Blitz of ITG. That's why income gains have been measly.
The US economy added 242000. Jobs in February the unemployment rate holding steady at four point 9%. For more we're joined by ITG investment research is chief economist stiglitz. ST. The job gains of well above economists' forecasts what does this say about the health of the US economy and the pace. Well. I think from a top line perspective the pace of recovery looks like it's the mere 2% in the current quarter we'll see with the second quarter brings. But when you look at the breakdown of the numbers sub 66% of the job gains to a lower paying jobs. In reach now in health and hospital workers in restaurants. And this has been an ongoing story during this whole recovery and one of the reasons why income gains. Have paled in terms of the growth rate relative to what we've seen him prior quarters process prior recoveries so it's it's a it's great that people more people have jobs it's Maury come into the economy with the pace of growth in terms of that income remained slow. It took it to get. That acceleration the Fed would like to seen consumer spending. Home buying these are the types of jobs and root them generate with. Look for all right let's talk about the wages wages actually inched lower this time but compared to that huge toward rise that we saw in January. What does this tell you about the tightness of labor market. When you look at the top line numbers you see declines like this is simply because he has such a large percentage. Of the growth in lower income jobs so it's just it's just a weighted average doing its thing. Investors looking Steve for that goal that loss number. You know strong growth but not through straws that's that you know entice the Fed to hike interest rates. Was this the number that the Portland for I think it's above what people looking for in terms of its top line numbers. And it certainly keeps June play in March is still. India. A no go in terms making. Moves. I really don't think it goes in March at all in fact if you look at the numbers that we got this morning. You could begin to ask the question it takes a few more months to say. But he can begin to ask that question whether or not the general flatness of job gains in any of these other job categories. Suggest some reluctance to hire. On the part. On the part of pointers. And so. You know yes we did restaurant now and a half workers but that kind of higher income growth. Still isn't there so many jobs sectors are still. In point fewer people now than they did before the recession began how hikes to receive. I'm going to be like to be that depended. I think June as the laws and numbers it's shown growth. Go and you. Whether they go again in September of really depends on whether an odd. So this summer months are an acceleration growth to be honest. Is really way too early unseemly particularly concerned about the quality of jobs that this economy keeps producing. On what about the economy overall odds of US recession has this report has diminished those lines. Not really you know if employment is. At best coincident indicator employment goes down economies going. But it's also kind of lagging indicator because people it payrolls based on decisions made several months higher. The main part of whether or not the economies even inching to a recession and by the way there is no data suggest the economy into recession to really talk about probability. In the probability I put it 30% and if it's going to happen to be again if it's going to happen it's gonna happen later this year in the second half of the year if it's going to current all. In the generators. That is the start. Now with reductions in capital spending. On the part of businesses. Its engine is lost if it is not offset. The reduction campus but businesses offset. By. You need job growth and confidence. By. Along a whole lot more this year than it is okay thanks lusting for joining fever military our thanks this thing with some ITG I'm Fred Katayama and this is.