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US job gain despite freeze raises economic hopes

Published on NewsOK Modified: March 7, 2014 at 11:02 pm •  Published: March 7, 2014
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WASHINGTON (AP) — Job growth in the United States has proved surprisingly consistent.

Brutal winter weather snarled traffic, canceled flights and cut power to homes and factories in February. Yet it didn't faze U.S. employers, who added 175,000 jobs, far more than the two previous months.

Modest but steady hiring has become a hallmark of a nearly 5-year-old economic rebound that remains sluggish yet strikingly resilient. The economy has been slowed by political gridlock, harsh weather and global crises. But those disruptions have not derailed growth.

Though the unemployment rate rose to 6.7 percent from a five-year low of 6.6 percent, it did so for an encouraging reason: More people began seeking work. The unemployment rate ticked up because most did not immediately find jobs.

Friday's report from the Labor Department suggested that a long-hoped-for acceleration in growth and hiring still has not occurred. But that might not be all bad: Households have pared debt and avoided the excessive spending and borrowing that have undercut explosive economies in the past.

Total U.S. credit card debt is still 14 percent lower than before the Great Recession began in December 2007, according to the Federal Reserve.

And moderate but consistent hiring still means more people have money to spend.

"A modest expansion may very well last longer than one that bursts out with big increases in spending and debt," said David Berson, an economist at Nationwide Financial.

Some economists also suggested that having endured harsh weather, the economy may be poised to pick up soon.

"If not for poor weather conditions, job growth would have been stronger," said Michelle Meyer, an economist at Bank of America Merrill Lynch. "This suggests we should see solid gains ... in coming months."

The figures were a welcome surprise after recent economic data showed that severe weather had closed factories, lowered auto sales and slowed home purchases. Along with a sharp increase in wages last month, the jobs report indicated confidence among some employers that consumer spending will increase in the near future.

The severe winter appeared to have less effect on hiring than most economists had feared. Construction companies, which usually stop work in bad weather, added 15,000 jobs. Manufacturing gained 6,000 for a second straight month. Government added 13,000 jobs, the most in six months.

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