US Jobs Up 678K in February, More Than Expected, Adding to Price Pressures

Bitcoin traders were monitoring the report since the Federal Reserve's efforts to slow inflation appear to be putting downward pressure on the cryptocurrency's prices.

AccessTimeIconMar 4, 2022 at 1:42 p.m. UTC
Updated May 11, 2023 at 4:35 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The U.S. added 678,000 jobs last month, more than expected, in a sign of how tight the labor market has become as Federal Reserve officials commence efforts to slow inflation running at its fastest pace in four decades.

The February jobs report from the Labor Department's Bureau of Labor Statistics was being monitored by crypto traders in case the data might affect the Federal Reserve's efforts to contain soaring inflation. A hot labor market can lead to faster wage increases, which can fuel inflation if businesses try to pass along their higher personnel costs to consumers.

Bitcoin (BTC) is seen by some investors as a hedge against inflation, but it often trades more like a risky asset, similar to stocks, with prices under pressure this year as the Fed moved to raise interest rates to help slow the rise in consumer prices.

  • Nonfarm payrolls increased by 678,000, the Bureau of Labor of Statistics reported Friday.
  • The unemployment rate edged down to 3.8%, from 4% in January. That's nearing the pre-pandemic level of 3.5% in February 2020.
  • Economists surveyed by Reuters had projected, on average, a gain of 400,000 jobs during the month.
  • Average hourly earnings of all employees on private nonfarm payrolls were $31.58, little changed from the prior month. The year-over-year increase worked out to 5.1%, versus expectations for 5.7%.
  • Fed Chair Jerome Powell described the labor market as "extremely tight" when testifying this week before U.S. lawmakers.
  • Powell signaled that the U.S. central bank will raise interest rates this month for the first time since 2018.
  • The Fed's next monetary-policy meeting is scheduled for March 15-16.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Bradley Keoun

Bradley Keoun is the managing editor of CoinDesk's Tech & Protocols team. He owns less than $1,000 each of several cryptocurrencies.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.