Last Friday, the Bureau of Labor Statistics report on February job growth provided a sliver of hope for the economy. Can that thin bit of hope survive sequestration?
A trend toward stronger employment could put some real momentum behind the economic recovery. That would be good news for a wide range of people, including those looking for work, employees wishing for better wage growth, and savers who've been living with microscopic interest rates on savings accounts and other deposits. However, there have been false hopes before, and this time the economy will have to overcome the obstacle of Federal budget cuts.
Strong job growth
Total non-farm employment grew by an estimated 236,000 jobs in February. That's nearly double January's number, and one of the best job growth figures in the past seven years. Of the past 84 monthly jobs reports, only six have shown stronger employment growth.
That sporadic job growth is part of the problem, though. The employment market got off to an even stronger start last year, but soon faded. This year, the job market will have to sustain its momentum against the tide of sequestration.