Euro-Zone GDP growth slows
WSJ reported this week that economic growth in the 16 countries that use the euro slowed as expected in the fourth quarter, with the fragile recovery entirely dependant on exports, revised official data showed. Quarterly gross domestic product growth slowed to 0.1% in the final quarter of last year, down from 0.4% in the three months to the end of September, the European Union's Eurostat statistics agency stated. The figures are in line with the first estimate of euro-zone GDP published last month and the market consensus estimate from a Dow Jones survey of economists.
Monster Employment Index rises sharply in February
The Monster Employment Index rose by ten points in February, as employers resumed hiring activity after January's seasonal lull. The long-term growth rate turned positive, with the Index up 2 percent year-on-year, for the first time since December 2007 suggesting some improvement in the underlying demand for labor. During February, online job availability rose in 15 of the Index's 20 industry sectors and in 19 of the 23 occupational categories monitored... "Although some of the increase in the February Index can be attributed to seasonality, a rise in hiring for sectors like manufacturing, transportation and wholesale trade offers an encouraging sign of increased investment and business activity," said Jesse Harriott, senior vice president and chief knowledge officer at Monster Worldwide.
Weather Conditions Play No Role on Employment Data
Nonfarm payrolls fell by 36,000 in February after declining by 26,000 in January. The consensus expected payrolls to decline by 68,000. It seems forecasters overestimated the effects of the severe winter weather on the payrolls data. The consensus estimate included a decline of 100,000 in payrolls due to inclement weather. As the bureau stated in its press release, the estimate turned out to be bogus and weather conditions played almost no role in moving the payroll numbers. The unemployment rate held at 9.7% in February. The consensus expected it to increase to 9.8%. Importantly, the unemployment rate did not hold at 9.7% due to statistical manipulations. Instead, the data provide evidence of an influx in job creation. The number of employed increased by 308,000 while the labor force rose by 342,000. There is a strong caveat to the unemployment data. The increase in employment is not coming from full-time/high-wage positions. Employment growth was caused by workers taking part-time jobs because poor business conditions made it difficult to find full-time work. These new part-time hires topped the entire aggregate increase in employment.
