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US Payroll Data – Unemployment Rate Drops To 6.2%

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The U.S. Labor of Bureau Statistics employment statistics, which is a survey conducted on 144,000 businesses and government agencies, reports that 379,000 new jobs have been added in February. Mainly led by the full reopening of states like Texas, Florida and Connecticut which have kicked the economy into gear as the services industry roars back to life after a disastrous 2020.

It is expected that unemployment will hit 6.2% and a USD$1.9 Trillion stimulus package will provide an extra boost to US Consumers to generate spending. New orders for manufactured goods in January increased $13.1 billion or 2.6 percent to $509.4 billion. Shipments are expected to rise going into the first quarter of the year as U.S business restock inventories. Shipping prices are going through the roof as countries open and manufacturers are ordering goods expecting consumers to continue spending. The US Coast Guard has released videos of shipping lane jams caused by the amount of ships trying to unload their shipments at the Port of Los Angeles. The backlog is causing shippers to consider alternative ports to unload their goods as waiting times skyrocket.

US Congress is expected to vote on the stimulus bill going into the weekend in order to provide a backstop to the damage caused by the pandemic on the US economy. The proposal to add a $15 minimum wage by Senator Bernie Sanders however did not make it into the bill as his fellow Democratic colleagues voted against it.