DATA SNAP:US Jan Nonfarm Payrolls +36K; Jobless Rate 9.0%Last update: 2/4/2011 8:30:00 AM===================================================================
Jan Employment Report ! Consensus: !
Jan Dec ! Payrolls: +136K !
Payrolls +36K +121Kr ! !
Unemployment Rate 9.0% 9.4% ! Actual: +36K !
Hourly Earnings $22.86 $22.78 ! !
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By Jeffrey Sparshott and Luca Di Leo
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. economy added few jobs in January even as the unemployment rate fell to its lowest level since April 2009 in a mixed report that points to a gradually improving market for workers. Nonfarm payrolls rose by 36,000 last month as private-sector employers added 50,000 jobs, the Labor Department said Friday in its establishment survey. The December number was revised to show an increase of 121,000 jobs, from a previous estimate of 103,000. The unemployment rate, which is obtained from a separate household survey, fell to 9.0% last month. About 13.86 million people who would like to work can't get a job. The two surveys can give conflicting views of the jobs market, but tend to converge over the long term. The payroll number was likely hit by bad weather in January, when storms forced people to stay home. Economists surveyed by Dow Jones Newswires had forecast payrolls would rise by 136,000 and that the jobless rate would rise to 9.5% from the previous month's 9.4%. The U.S. unemployment rate has fallen for two straight months, but still has been at or above 9% since May 2009--the longest stretch at such an elevated level since the Second World War. Federal Reserve Chairman Ben Bernanke Thursday said recent jobs data gives some ground for optimism, pointing to the decline in initial claims for unemployment benefits, as well as the improvement in indicators of jobs openings and firms' hiring plans. But he added that it will take several years for the jobless rate to come down to normal levels. "Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he told reporters at the National Press Club. The Labor Department Friday said that private-sector employers, which account for about 70% of the work force, added 50,000 jobs in January after adding a revised 139,000 in December. The private sector has been adding jobs for a year, though the pace hasn't been enough to return the unemployment rate anywhere close to pre-recession levels. Instead, companies have been increasing productivity by squeezing more output from their workers. That can be good for profits, but ultimately economists expect firms will have to hire more workers to keep pace with expanding demand. The January breakdown showed the biggest gain in manufacturing since August 1998, led by makers of durable goods such as fabricated metals and machinery. The sector has been an important source of jobs during the recovery. Employment jumped by 49,000 in January. The retail industry also gained jobs. Several sectors that tend to be hit by bad weather showed declines in employment. Builders continued to shed workers, and employment at transportation and warehousing companies fell. Total government employment, meantime, dropped by 14,000 as the number of municipal jobs declined sharply. Federal and state workforces also shrank. The report showed 43.8% of unemployed Americans, or 6.2 million people, were out of work for more than six months in January. The longer someone is without a job, the harder it is to find work. Average hourly earnings of all employees increased by 8 cents to $22.86. Higher income helps support consumer spending. Accounting for about 70% of demand in the U.S. economy, household consumption has strengthened recently, but remains weak compared to previous recoveries. Meanwhile, the average workweek for all private-sector employees edged lower to 34.2 hours in January. Employers normally increase the hours for their existing work force before hiring new people. Friday's jobs report also included an annual benchmark revision to nonfarm payrolls--the Labor Department adjusts figures from the previous March to reflect a more complete count of unemployment insurance records. The Labor Department Friday downwardly revised March 2010 payrolls by 378,000. This means employment levels likely were worse than earlier reported in the year through March 2010. The Labor Department's employment report can be accessed at: bls.gov -By Jeffrey Sparshott and Luca Di Leo; Dow Jones Newswires; 202-862-9291; jeffrey.sparshott@dowjones.com (END) Dow Jones NewswiresFebruary 04, 2011 08:30 ET (13:30 GMT) |
