logo
Plus   Neg
Share
Email

U.S. Job Growth Rebounds More Than Expected In January

nonfarm-payroll-020720-lt.jpg

A closely watched report released by the Labor Department on Friday showed employment in the U.S. increased by more than expected in the month of January.

The Labor Department said employment jumped by 225,000 jobs in January following a revised increase of 147,000 jobs in December.

Economists had expected employment to rise by 160,000 jobs compared to the addition of 145,000 jobs originally reported for the previous month.

The stronger than expected job growth reflected Notable job in construction, healthcare, and transportation and warehousing.

Despite the stronger than expected job growth, the unemployment rate inched up to 3.6 percent in January from 3.5 percent in December. Economists had expected the employment rate to remain unchanged.

"The revisions to the population controls reduced the labour force by 524,000 and employment by 507,000, but we knew they were coming when the Census Bureau recently released much lower population estimates for 2019," said Paul Ashworth, Chief US Economist at Capital Economics.

He added, "Putting aside those one-off effects, which are not applied to the historical data, the labour force otherwise increased by a solid 574,000, outstripping a 418,000 increase in the household survey measure of employment."

"So the bottom line is that the unemployment rate only increased because of all the people coming into the labour force, although its worth cautioning that was probably a weather effect too," Ashworth concluded.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT
>