What's going on?

In another sign that the US economy is humming along at a respectable clip, it added 235,000 jobs in February (tweet this) � which was more than Wall Street was expecting.

What does this mean?

Notably, every industry, except retail, added jobs. This is arguably a sign that the rising tide of economic activity is affecting the entire economy, not just one or two areas (except, of course, retail, which is struggling partly as the shift to online shopping threatens brick and mortar stores).


Importantly, the data suggested that there is less underemployment: proportionally more people are working full-time than those that are working part-time or have given up looking for work.

Why should I care?

For you personally: More jobs are leading to higher pay.

Your pay is subject to the laws of supply and demand. As more and more jobs are created, employers have to increase pay in order to attract and retain workers, which are increasingly in demand. That�s partly why wages grew 2.8% in February versus one year ago � the second fastest rate since the 2008 financial crisis.


For the markets: The US Federal Reserve (�the Fed�) will almost certainly raise its target interest rate on Wednesday.

Officials from the Fed have spent the last few weeks telegraphing their intention to increase the target interest rate at the upcoming meeting. Friday�s robust jobs report lends credence to the idea that the US economy is doing reasonably well and thus can handle the moderate headwind that a slightly higher interest rate would create (higher interest rates lead to higher borrowing costs, which typically restrain borrowing and spending in an economy). With the odds of an interest rate increase at almost 100%, investors will be paying more attention on Wednesday for clues as to the Fed�s intentions for subsequent meetings.