WASHINGTON (MNI) – White House economic adviser Alan Krueger Friday
said February’s strong jobs report was further proof that the U.S.
economy is continuing to heal. He cautioned, however, that the
volatility of the employment data, and the fact that they are subject to
revision means it is important not to read too much into any one monthly
report. “Nevertheless, the trend in job market indicators over recent
months is an encouraging sign,” he said.

The following is the full text of Krueger’s statement:

Today’s employment report provides further evidence that the
economy is continuing to heal from the worst economic downturn since the
Great Depression. It is critical that we continue the economic policies
that are helping us dig our way out of the deep hole that was caused by
the recession that began at the end of 2007, including measures to help
the sectors that were most severely harmed by the bubble economy that
misdirected investment and created too few durable jobs.

After losing millions of good manufacturing jobs in the years
before and during the recession, the economy has added 429,000
manufacturing jobs in the past two years. For the first time since the
1990s, the manufacturing sector is adding jobs. To support a revival in
manufacturing jobs and output, the President has proposed tax incentives
for manufacturers, enhanced training for the workforce, and measures to
create manufacturing hubs.

Private sector payrolls increased by 233,000 jobs and overall
payroll employment rose by 227,000 jobs in February. The unemployment
rate was unchanged at 8.3%. The unemployment rate has fallen by 0.8
percentage point over the last 6 months.

There was an increase in the size of the labor force last month of
476,000. Importantly, the increase in the labor force last month was due
in large part to a reduction in the number of workers who exited the
labor force between January and February.

Despite adverse shocks that have created headwinds for economic
growth, the economy has added private sector jobs for 24 straight
months, for a total of more than 3.9 million payroll jobs over that
period. In the last 12 months, 2.2 million private sector jobs were
added on net. In the last 6 months, 1.3 million private sector jobs were
added, the most of any 6 month period in nearly 6 years.

Sectors with net job increases included health care and social
assistance (+61,100), temporary help services (+45,200), leisure and
hospitality (+44,000), and manufacturing (+31,000). Construction lost
13,000 jobs, reflecting a loss of 15,400 specialty trade contractor
jobs. Employment in the Federal government fell by 7,000 jobs.

The monthly employment and unemployment numbers can be volatile,
and employment estimates can be subject to substantial revision.
Therefore, as the Administration always stresses, it is important not to
read too much into any one monthly report; nevertheless, the trend in
job market indicators over recent months is an encouraging sign.

** Market News International Washington Bureau: 202-371-2121 **

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