Good news is still being reported in the employment sector though granted, the recent numbers were not affected by the coronavirus as much as they could be now. Still, employers added 237,000 new jobs last month, nearly 100,000 more than consensus estimates. On top of that, December and January had their totals revised upward, which brought the three-month average to 243,000, dropping the unemployment rate down to 3.5%.

 

By sector, construction added 40,000 jobs, the second consecutive month to do so, leisure and hospitality brought in 51,000 new positions. Government employment rolls increased by 45,000, and only 7,000 of that was from the hiring of temporary Census workers.

In evaluating the current situation, the Wells Fargo Economics Group said that, "As with last month, the unseasonably mild winter weather appears to have given some lift to hiring. The Fed is already looking ahead to the ripple effects of efforts to contain COVID-19, so (this recent) report does not change our assumption for additional easing before the end of Q2. The COVID-19 environment stands to impact hiring in the service sector much more directly, in addition to dealing another blow to the manufacturing and mining industries. Delayed shipments, canceled travel and forgone outings are ripe to reduce hiring in the months ahead. Hours are also likely to be cut, although there too the starting point looks better with an uptick in February."