MBA Career: The Latest on Jobless Rate and Wage Growth

Last Updated on March 8, 2024 by Robert C. Hoopes

The US job market showed signs of weakening as the jobless rate in February rose to 3.9%, the highest level since January 2022. This unexpected increase has sparked expectations of rate cuts by the US Federal Reserve as wage growth also slowed, with average hourly earnings rising only 0.1%, falling short of economists’ forecasts.

Despite the uptick in the unemployment rate, the economy added 275,000 jobs in February, more than expected, although there were downward revisions to previous months’ numbers. This mixed data caused European stocks, bonds, and the euro to rise, with the exception of the FTSE 100 in London.

In other news, Belgian beer company Duvel was forced to halt production at four breweries and one site in Missouri after a cyber attack. Additionally, HelloFresh shares plunged over 40% after issuing a profit warning, with the outlook for annual profits falling short of expectations.

Meanwhile, Kristalina Georgieva, the head of the IMF, announced her candidacy for a second term, backed by the French finance minister. In the corporate world, BP paid its CEO £8m last year and clawed back £1.8m from the former CEO’s pay after dismissal. Shares in Frasers Group also fell after the company put Matchesfashion into administration, just three months after its purchase.

On a more positive note, Mondi recently acquired DS Smith in an all-share deal worth £5.14bn, creating a paper and packaging group worth over £10bn. This acquisition is expected to have a significant impact on the industry and the companies involved.