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University of Maryland economist Peter Morici, Stephen Moore of the Wall Street Journal, and WSJ economics reporter Ben Casselman discuss the February...
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We've got our panel here I wanna jump right and -- Peter I'll start with -- one thing that Peter points out in these numbers is that yes.
The unemployment rate came down to seven point 7% a drop of two tenths of percent at considerable drop.
But he also points out that a 130000.
Folks actually left the workforce how you interpret these.
Numbers.
Well I was looking at at at the number of people that say they're not in the labor force overall in addition to the folks that left you have new -- that didn't join up.
So if you look at the number of people that are not in the labor force in the in the total adult population it's up 300000.
Which is good for about two -- -- -- percent.
In the unemployment rate which is just about -- -- -- and it's up about close to twice as much.
As the as as as as that has been declared as as the declared job growth about -- and a -- times.
So a lot of this is moving -- movement around in the number of adults participating.
Bottom line with the January adjustments it's not as rosy as that -- its progress but it's not a -- Stayed what do you make of these numbers it's good they'll make you feel that the look I say -- -- -- I mean this is the first.
We don't really pretty good job jobs report we've had a long time with over 200000 job growth in a Peter's point is an interesting one because it's a conundrum is that Peter I mean -- -- did the labor force I mean the number of jobs is actually increasing.
And yet the number of people in the labor force is actually declining in and that's actually exactly the opposite of what you would expect and I -- -- to be very puzzling.
Maybe it's because of government -- -- or or people just given up after two or three years.
But overall this is a very positive report and then again shows that about all of this talk about government spending cuts really hasn't affected the market.
I -- off one last point I think that construction number really should always this housing recovery is for real.
Well Steve I wanna point out that -- they had peppering the markets are saying hit -- were a lot I think its stock index futures in name.
Art adding onto their earlier gains this morning so there's certainly optimism.
Bear the Dow futures now up 68 points this would be of course another record setting day for the markets in all -- -- -- critically about.
In my neck of the data actually is interstate jail because a lot of times the markets like a -- Yeah -- employment report because that makes them think that the Fed won't dot.
Won't raise interest rates and a funny thing on this report probably makes it more likely that we're gonna see maybe an easing in terms of this easy money policy look up prolonging -- that.
So let's -- -- -- and about that because one of the trickiest things that the Fed has gotten into in terms of how it's communicated.
With the public with investors is that six and a half percent unemployment rate that its net that is stands as its target.
And terms of when it will begin raising interest rates and that number could show up a lot earlier.
Then when it says that it will hold it leaps that you consider began rising interest rates.
Well short I mean look at seven point 7% is a lot better than we expected grated it's down a couple -- we're not exactly on -- fast tracked it to six point five right now.
I think one thing to keep in mind -- was the Fed has two different things it's looking at here right it has to think about.
About when it's going to raise interest rates it also -- to think about when it's gonna pull back.
On on that bond buying program right and that's something where we've seen a little bit more agitation from some members of the Fed.
To start reining that in and and and report like this could could make that a little bit more likely.
Hey Peter.
Peter Marie -- Peter Barnes -- when Washington pointed out the fact that see anybody contributed some of the jobs growth construction jobs Peter pointed out were very strong.
Yeah I think that's that that's that's likely in and that's a good thing.
Also I think that the end of the New York City economy's going to be -- actually strengthened by the rebuilding has -- resources are certainly there.
And generally speaking -- -- in a wealthy area when you have a disaster like this and the monies that they actually rebuild better and stronger.
So while you know certainly the insurance company -- ahead.
I think that in New York City economy's going to be be better off three years from now for having had hurricanes and although it it's awfully painful way to have -- happen.
