Published: Mon, February 04, 2019
Markets | By Erika Turner

United States adds 304,000 jobs in January, almost doubling economists' expectations

United States adds 304,000 jobs in January, almost doubling economists' expectations

The U.S. economy added 304,000 jobs in January while the unemployment rate crept up slightly to 4 percent, according to data released Friday by the Bureau of Labor Statistics. The aggregate weekly payrolls index that combines average hourly earnings, average weekly hours, and employment, grew by a solid 0.3% m/m, lifting its yr/yr gain to 5.7%-and should support strong consumption growth in January. The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population.

The federal government was shut down for the survey period covered by the January jobs report. But the government shutdown caused, you know, some delays in other economic reports.

In December, the economy added a revised 222,000 jobs.

On a monthly basis, from December to January, wages barely rose, though. The Department of Labor reports this morning that employers in this country added 304,000 jobs last month. Jim Baird, chief investment officer at Plante Moran Financial Advisors, wrote that though there is volatility in the United States stock market, the encouraging jobs numbers will ultimately strengthen the USA economy. The unemployment rate rose to 4 percent, its highest level since June, which the Labor Department attributed to the impact of the shutdown. This lifted the unemployment rate one-tenth of a percentage point from 3.9 percent in December. This figure comes from a survey in which the Labor Department asks employers (both private sector and government) how many people were on the payroll for the pay period that includes January 12. Job growth was boosted by hiring at construction sites, retailers and business services as well as at restaurants, hotels and amusement parks. They were not included in the unemployment rate, either.

The string of job growth underscores the long economic expansion since the Great Recession.

Diane Swonk, chief economist at Grant Thornton, said that many federal workers and contractors likely went out and found part-time work during the 35-day shutdown.

Eating breakfast may not lead to weight loss
Several trials were also conducted to examine the effect of eating or skipping breakfast on bodyweight and energy intake. What's more, the scientists concluded skipping breakfast does not reduce appetite during the day, as previously thought.

The housing market has slumped as mortgage rates have increased. The Labor Department still counted them as employed since the workers were going to be paid eventually.

China's economy is decelerating sharply and Italy's economy has entered recession, exacerbating fears that slower global growth will cut into USA exports.

In fact, the shutdown might have increased the number of jobs added as furloughed workers sought out part-time jobs.

What do the USA jobs numbers mean for Wall Street?

Private sector payrolls were up by 296,000, with big increases seen in the construction and leisure and hospitality industries. Hiring was likely boosted by mild temperatures in January.

Manufacturing payrolls increased by 13,000, slowing from December's 20,000 increase.

Like this: