Economy
March 8, 2020
February Job Creation Beats Expectations
Written by Peter Wright
In February, job creation beat expectations, and there is no sign of a virus effect even in the details.
Net job creation in February was a surprising 273,000. In addition, December was revised up by 37,000 and January up by 48,000. Rising employment and wages are the main contributors to GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to GDP; therefore this is one of the indicators that help us understand the reality of the steel market. This is not likely to continue as the coronavirus puts a brake on economic activity. COVID-19 will probably be what economists call a black swan—a rare and inherently unforeseeable event with severe consequences. We all hope the global effort to contain the virus will ensure this black swan doesn’t fly, but employers and society are making plans in case it does.
