Economy grows by 151000 jobs in January

Economy grows by 151000 jobs in January

In fact, the number of jobs added by the US economy in the last 12 months is 2.67 million, the lowest level of annual job growth since June 2014.

The U.S. economics team at BNP Paribas called the report "surprisingly positive", and noted that, among other things, the increase in the labor participation rate, which brought more prospective workers back into the labor force, actually prevented the nominal unemployment rate from falling even further, to 4.8 percent.

In January, average hourly earnings for all employees on private nonfarm job payrolls increased by 12 cents to $25.39.

Fannie Mae Chief Economist Doug Duncan said the slowdown in job growth was expected after "outsized gains" during the final three months of the year. The number of long-term unemployed, or those jobless for 27 weeks or more, held at 2.1 million in January, accounting for 26.9 percent of the unemployed.

The manufacturing industry added 29,000 jobs.

Aside from the slowdown in overall hiring, economists were encouraged by most other aspects of the report. Unemployment insurance claims remain near historic lows, with 285,000 initial claims during the last week of January, the Labor Department reported.

-Job gain of 151,000, below economists' expectation of approximately 190,000. "As the unemployment rate remains low, many economists expect Americans to see paychecks go up".

However, stock markets plummeted this morning after the release of jobs report. "Payrolls is the one for the doves, Average Earnings, Household Labor force growth, Unemployment Rate, Total & Mfg Hours all favor the rate hikers".

Job fair job fair line
Justin Sullivan Getty Images

While the report also said the jump in employment in December was downwardly revised to 262,000 jobs from 292,000 jobs, the increase in employment in November was upwardly revised to 280,000 jobs from 252,000 jobs.

The weak hiring number aside, average hourly earnings rose and hiring rose in the troubled manufacturing sector after several weak months.

Federal Reserve policy makers have predicted for months that average hourly wages are bound to start rising as a result of the tightening jobs market, and that when they do increased consumer spending will push prices higher and lift inflation toward the Fed's 2% target.

Specifically, the January report will serve as a reminder that it is too early to fully eliminate the possibility that the Federal Reserve, the most powerful central bank, will raise rates in March.

President Obama celebrated that benchmark by making a statement on the economy, noting that not only had unemployment hit its lowest level in eight years, but that the private sector had also seen 71 straight months of private-sector job growth.

(4.5 percent), teenagers (16.0 percent), Blacks (8.8 percent), Asians (3.7 percent), and Hispanics (5.9 percent) showed little change over the month.

The government said last week the economy grew just 0.7% in the fourth quarter as the global troubles and oil's downturn hammered exports and business investment.

The moderation in hiring still leaves the job market on solid footing and shows companies are confident about the outlook for domestic sales.

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