Unemployment Hits Seven Year Low
The economy gained fresh momentum last month as the Labor Department reported on Friday that employers added 295,000 workers in February, far exceeding expectations, and the unemployment rate took another dip. But wage gains continued to lag, rising only 2 percent from a year earlier. The unemployment rate fell to 5.5 percent, its lowest since mid-2008, down from 5.7 percent in January. Last month, wages rose just 0.1 percent, according to the Labor Department, a disappointment coming off an increase of 0.5 percent in January. Despite the disappointing wage numbers, the report prompted a new round of optimism about the economy’s recovery and spurred more talk on Wall Street that the Federal Reserve might raise interest rates at its June meeting rather than wait until September. The news prompted a rise Friday morning in the yield on 10-year bonds and a dip in the stock market, where investors fear that higher interest rates will take a bite out of corporate profits.
Labels: Barack Obama, economy, unemployment
