By Ian Swanson - 03/05/10 01:27 PM EST
The sluggish economy lost 36,000 jobs in February while the nation's unemployment rate held at 9.7 percent for the month, the Labor Department reported on Friday.
The monthly report said severe winter storms last month may have affected payroll employment and hours worked, but that it is difficult to quantify the weather's impact.
Economic forecasters predicted February’s numbers would be
dismal because of three winter storms that wreaked havoc on the East Coast last
month, and Obama administration officials sought at the beginning of the week
to downplay expectations.
Romer also said the impact of the weather was "likely substantially negative."
Earlier this week, Larry Summers, the president’s chief economic adviser, told
CNBC the blizzard would “distort” the monthly statistics and that it would be
important to look at underlying trends in the economy.
Goldman Sachs had predicted that as many as 100,000 jobs could be lost in February because of the weather. The National Oceanic and Atmospheric Administration ranked two of the three storms among the 25 highest-impact Northeastern snowstorms of the last half-century.
The average workweek for all employees declined in February by 0.1 hours, according to the report. That statistic could have been affected by employees who could not get to work because of storms or who saw their businesses close because of the weather.
Since companies generally add hours for existing workers before hiring new workers, economists are looking for gains in the average workweek to signal additional hiring by businesses in the future.
Construction, a sector that could be affected by the bad weather, shed jobs, while hiring in manufacturing was steady.
In a note about the impact of the weather, the Labor report said workers would have to be off for an entire pay
period not to be included in the report. It also noted that cleanup and repair
activities dealing with the storms and their aftermath might have led
to additional workers or more hours by existing workers.
Temporary agencies continued to add workers in February. That's seen as a positive sign for the labor market, since the hiring of temporary workers can be a precursor to companies hiring permanent workers.
The report comes a day after the House approved a $15 billion measure that would give tax breaks to companies that hire workers. The Senate, which previously passed a similar measure, will now consider the House bill.
President Barack ObamaBarack ObamaSocial Security to run dry three years sooner than expected: study Former CIA chief shuts down Trump's calls for waterboarding Clinton camp: Trump's fundraising 'bragging is total bunk' MORE has said jobs will be his administration’s No. 1 focus in 2010, even as Democrats continue their long effort to overhaul the U.S. healthcare system.
Republicans used the report to reiterate their attacks against Obama's healthcare push.
"Mother Nature is a force to be reckoned with, but it’s the blizzard of higher taxes, wasteful spending, and reckless borrowing coming out of Washington that’s destroying jobs in this country," House GOP Leader John BoehnerJohn BoehnerEXCLUSIVE: Pro-Hillary group takes 0K in banned donations Ryan: Benghazi report shows administration's failures Clinton can't escape Benghazi responsibility MORE (Ohio) said in a statement.
In January, unemployment dropped from 10 to 9.7 percent. The February report revised estimates on job losses in January to 26,000, up from the 20,000 initially reported. It also issued revised numbers for December, reporting that 109,000 jobs were lost that month instead of the 150,000 initially reported.
This story was updated at 9:05 a.m.