USA unemployment rate rises to 4 pct in January

A worker inspects the rear end of a General Motors Chevrolet Cruze at Jamestown Industries in Youngstown Ohio

A worker inspects the rear end of a General Motors Chevrolet Cruze at Jamestown Industries in Youngstown Ohio

Employers added 304,000 jobs last month and the unemployment rate inched up to 4.0 percent due to the shutdown, the Labor Department said. Another issue to consider was that the ADP payrolls report had sort of tipped the hat to predict big jobs gains in January. These figures continue the job growth of the December 2018 jobs report. That was slightly lower than the 15,000 that economists had forecast.

President Donald Trump has seen the economy grow considerably since entering office roughly two years ago.

Retail trade rose by 21,000.

Some of the best forecasters in the country had predicted job gains of about 170,000, a substantially lower figure.

It was boosted by a 500,000 increase in the number of people working part time, likely because of the government shutdown. Average hourly earnings in the leisure and hospitality sector have risen almost 4% over the past year, compared to 3.2% for the workforce as a whole.

Both the unemployment rate, at 4.0 percent, and the number of unemployed persons, at 6.5 million, edged up in January. So some furloughed workers classified themselves as "employed" while others said (correctly) that they were "unemployed temporarily". As a result, these workers were included in the January payrolls count in the survey of employers. They don't get paid back after the furlough ended.

Job growth increased broadly in January.

The data comes after the US Federal Reserve chose to suspend its policy of raising interest rates. Chairman Jerome Powell said earlier this week that the case for raising the Fed's benchmark rate had weakened. That compared to an 85-cent increase at 3.2 percent over the year. After revisions, job gains have averaged 241,000 per month over the last 3 months. "January's strong performance quells any lingering feelings that a hiring plateau might have occurred from tariffs, the government shutdown or recent market volatility", Steve Rick, chief economist at CUNA Mutual Group, said in a note.

Man United's Martial can score 20 goals a season, says Solskjaer
As United's resurgence continues under Solskjaer's regime, the future is looking bright for the Red Devils. Rashford has scored more goals in all competitions since his debut (42) than any other United player.

On Thursday, the Employment Cost Index - a broader measure of earnings - showed that total compensation rose more in 2018 than it had since 2008.

The service-providing sector added a massive 224,000 jobs.

The strong job market, though, is encouraging more people who weren't working to begin looking.

Employment in health care increased by 42,000 in January. That, in turn, has allowed their family to spend a bit more freely. The shutdown will probably end up slowing the economy's growth for the first three months of the year.

Jacumin, her husband and three children will head to Hilton Head in SC in July. The BLS noted that there was an increase in the unemployment rate as laid-off federal workers filed for benefits. That's a key reason why the unemployment rate rose despite the healthy job gain. The string of job growth underscores the long economic expansion since the Great Recession. But some say that even businesses that lost income from the shutdown likely held onto their staffs, knowing that the shutdown would only be temporary.

The labor force participation rate continued to defy expectations, rising for the second consecutive month to 63.2% from 63.1%.

The reports that have been released have been mixed.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.