February Jobs Report Commentary from MBA's Joel Kan

The following is MBA VP and Deputy Chief Economist Joel Kan’s reaction to this morning’s U.S. Bureau of Labor Statistics report on employment conditions in February.  

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“The unemployment rate increased for the first time since August 2023, but at 3.9 percent, it is still low by historical standards. Last month’s gain of 275,000 jobs outpaced the 12-month average and was largely driven by service sector employment, which accounted for 204,000 jobs added. Annual wage growth slowed slightly to 4.28 percent, but this measure also remains above the 3 percent longer-run average. Taken together, this labor market tightness is contributing to upward pressure on inflation, particularly in the service sectors of the economy.

“The strength in the job market, along with an economy that is still growing at a moderate pace, are positives for the housing market, as it supports home purchase activity and helps borrowers to stay current on their mortgage payments. However, the labor market’s continued resiliency is one of several factors keeping mortgage rates from declining much further in the near term, as it increases the likelihood that the Fed will not rush to cut rates.”