Jobs Report: Economy Added 227000 Jobs in January, While Wages Slowed
- Author: Joey Payne Feb 04, 2017,
Feb 04, 2017, 0:49
Job creation surged in the USA economy in January while the unemployment rate drifted marginally higher as more people joined the job hunt, the Labor Department reported Friday.
Early buying interest may be generated in reaction to a report from the Labor Department showing stronger than expected job growth in the month of January. All employees on private non-farm payrolls saw continued wage growth in January, with average hourly earnings increasing by $0.03.
The increase our Solman Scale U7 and in the unemployment rate was the result of more people entering the labor force, looking for work.
President Donald Trump is applauding the January jobs report, saying it shows there's a "great spirit in the country right now". That isn't quite accurate: The report is based nearly entirely on data from before Trump took the oath of office. Since the election, Trump has taken to Twitter to praise business leaders, as well as to criticize them for moving jobs overseas.
Ten-year Treasury yields fell to 2.45%, while Dow Jones industrial average and S&P 500 futures added to their premarket gains.
President Trump tweeted about a variety of subjects Friday morning, before the monthly jobs report was published.
"Time will tell if Trump can keep the economy's winning streak alive".
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of January.
The lackluster transportation hiring contrasts with strong growth in overall employment. Average earnings in the leisure and hospitality sector, which employs the majority of minimum-wage workers, rose 8 cents an hour in January.
Trump has made job growth a central part of his economic agenda.
Not a "fictitious" unemployment rate: On the campaign trail, Trump made no secret of his disdain for the unemployment rate, which he once called "one of the biggest hoaxes in modern politics".
"Don't believe these phony numbers when you hear 4.9 and 5 per cent unemployment", Mr. Trump said in his victory speech after the New Hampshire primary a year ago.
The number of long-term unemployed people (those jobless for 27 weeks or more) remained unchanged at 1.9 million in December (representing 24.4 percent of the unemployed).
The unemployment rate for all Americans increased from 4.7 percent in December to 4.8 percent in January. The labor force participation rate, for instance, has fallen considerably since the last recession, and has failed to rebound.
Turning to some of the key unemployment rates.
Standard economic theory suggests the move will encourage companies to pare back their payrolls and switch to automation to replace more expensive workers in the future.