On the February Jobs Report

A big headline payroll beat, all the better given large upward revisions. The Fed will be comforted by sluggish hourly wage growth and a steady unemployment rate. The big news beneath the surface is the return of dynamism to the labor force, drawing many new participants into it – including many who might have been thought to have already aged out. We do not read this as a sign of business cycle exhaustion, but rather a signal that increasing dynamism can perpetuate the expansion.