A robust job gain in January shows USA economy’s durability

A robust job gain in January shows USA economy’s durability

The Labor Department reported that 490,000 more people were working part-time in January but wanted full-time work, and the department noted that this "may reflect the impact of the partial federal government shutdown". Transportation, leisure and hospitality, construction and health care led the job gains.

Private economists had expected an increase of about 170,000 jobs and the unemployment rate to be unchanged.

Among the unemployed, the number who reported being on temporary layoff increased by 175,000, and that figure was shown to have included furloughed federal employees who were classified as unemployed on temporary layoff under the definitions used in the household survey.

Hourly pay grew a token 0.1 percent over December but was up 3.2 percent over January of previous year, well above consumer inflation of 1.9 percent in the same period, leaving American workers with greater purchasing power. According to the New York Times, the US economy has now added jobs for 100 consecutive months.

The unemployment rate has risen to 4 percent from 3.9 percent in December. Last week's applications for unemployment benefits came in at 253,000, above from the 49-year low hit earlier in the month but still low by historical standards.

Friday's solid jobs report provided a dose of reassurance that the economy remains mostly healthy and likely to shake off any effects of the shutdown. Specifically, the establishment survey will treat federal workers, irrespective of whether they were furloughed or working without pay, as having been employed. Since President Trump was elected in November 2016, the USA economy has created over 5 million jobs.

More news: Samsung Teases Foldable Galaxy Smartphone: Galaxy F?
More news: Kyrie Irving drops shock trade U-turn hint amid Lakers and Knicks rumours
More news: Rapper Bow Wow arrested, charged with battery

How did the shutdown change the jobs report? It didn't affect the numbers because of some technicalities of who the government considered unemployed in January. Some 426,000 were discouraged workers, who weren't looking for work because they believed no jobs are available for them, based on the BLS survey. And so we'll have to wait to see more data.

The economy added 304,000 nonfarm payrolls at the start of 2019, bringing the labour market into a 100th straight month of job creation and compared with forecasts for increase of 165,000.

"This is the sweet spot for investors right now", Long said. Job growth around 120,000 is more than enough to keep the unemployment rate under 4%.

That increased the size of the labor force, driving the closely watched labor force participation rate up to 63.2 percent, its highest level in more than five years.

President Donald Trump, a cheerleader for good economic data, celebrated the numbers by posting a tweet on February 1: "JOBS, JOBS, JOBS!"

Related Articles

  • Radar analysis: researchers find giant cavity in Antarctic glacier

    Radar analysis: researchers find giant cavity in Antarctic glacier

    The glacier has been coming unstuck from a ridge in the bedrock at a steady rate of about 0.6 to 0.8 kilometers a year since 1992. With climate change likely to continue accelerating this melt, the implications for global sea level rise are considerable.
    Groundhog Day 2019: Shadow or no shadow?

    Groundhog Day 2019: Shadow or no shadow?

    Handlers for Pennsylvania's most famous prognosticating groundhog say he didn't see his shadow when the sun rose Saturday. In the event, winter continued longer than six weeks, with a nor'easter slamming New York City on March 21, 2018.
    Italy in recession as eurozone sluggish

    Italy in recession as eurozone sluggish

    Interested in Italy? Add Italy as an interest to stay up to date on the latest Italy news, video, and analysis from ABC News. German retail sales fell in December at their steepest rate since 2007, and vehicle exports to China are on the wane.
  • Venezuela general backs Guaido in video

    Venezuela general backs Guaido in video

    It helped spark a week of protests in which 40 people were killed in clashes with security forces, with hundreds more arrested. This is time for action", Pence told a raucous gathering of Venezuelan exiles and community leaders in Florida.
    Eagles expected to pick up Nick Foles $20M contract option

    Eagles expected to pick up Nick Foles $20M contract option

    If Foles bought his freedom, the Eagles could still franchise tag him for as much as $25 million. According to Rapoport, Foles could be traded after the Eagles pick up the option.
    United Kingdom  carmakers issue stark warning on Brexit

    United Kingdom carmakers issue stark warning on Brexit

    After the Brady amendment passed, the European Union immediately ruled out any renegotiation - in forthright terms . MPs also voted on January 29 to deprive themselves - for now - of two escape routes from the threat of no deal.
  • Lionel Messi injured in draw with Valencia and could miss Clasico

    Lionel Messi injured in draw with Valencia and could miss Clasico

    Jordi Alba replaced Nelson Semedo at the break as Barcelona upped their game at the start of the second stanza. The draw presented Atletico Madrid, playing on Sunday, the chance to close the gap at the top to three points.
    Mariah Carey holds her first concert in Saudi Arabia

    Mariah Carey holds her first concert in Saudi Arabia

    Saudi authorities did not immediately respond to CNN's request for comment on Alhathloul's allegations. My own baby sister said she is being whipped, beaten, electrocuted and harassed on a frequent basis.
    Pochettino pledges to stay with Spurs

    Pochettino pledges to stay with Spurs

    Pochettino does deserve credit for making Tottenham a consistent presence in the top four despite spending far less than their Premier League rivals.
  • Fake university used as sting to catch phony foreign students

    Fake university used as sting to catch phony foreign students

    The agency also detained hundreds of foreign students affiliated with the university and started the process of their deportation. Federal prosecutors claim the students were aware the university was not running a legitimate operation.
    Donald Trump Enters 2020 Election Cycle With Massive Fundraising

    Donald Trump Enters 2020 Election Cycle With Massive Fundraising

    In an interview with The New York Times published Thursday night, Trump said he has "set the stage" to take action on his own. Even on Friday, Trump was going after House Speaker Nancy Pelosi by name , calling her clueless and her ideas risky .
    Facebook deletes 783 pages, accounts tied to Iran

    Facebook deletes 783 pages, accounts tied to Iran

    The removals built on activity the companies found past year , with some outside help from security firm FireEye. The Venezuelan accounts were far more active, pumping out some 50,000 tweets related to the US election.