The bigger picture

4 March 2016 By Gina Chon Follow @GinaChon

More Americans found work last month than expected. But productivity gains have not kept up. Nor has GDP, in large part because consumers are nervous about the future. That’s holding them back from spending more, reinforcing America’s status as a slow-growth economy.

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The United States added 242,000 jobs in February, while the unemployment rate remained steady at 4.9 percent, the Bureau of Labor Statistics said on March 4. Analysts expected 195,000 new positions.

Average hourly wages fell by 0.1 percent to $25.35 from January. The labor force participation rate edged up to 62.9 percent, reflecting a 0.2 percent increase from the previous month. Healthcare, retail and construction sectors experienced job growth, while mining contracted.

In a separate report, the Labor Department said on March 3 that productivity fell by an annualized 2.2 percent rate in the fourth quarter of 2015. GDP growth for that period reached an annualized 1 percent pace, the Commerce Department said last month, while personal consumption spending rose at a 2 percent annual rate.

The Federal Reserve will meet on March 15 and 16 to decide whether to raise interest rates.

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