U.S. employers added 143,000 workers to their pay in January, the Labor Department said Friday, bringing the unemployment rate down to 4.0%.
Economists expected 168,000 jobs and unemployment rates of 4.1%, according to an Econoday survey.
The numbers are seasonally adjusted. January typically has a massive downshift in employment in the retail sector as businesses shrink after the holiday shopping season. Without seasonal adjustments, data shows that the economy reduced nearly 2.9 million jobs in January.
Private sector employment increased by 111,000, below 140,000. Government employment has increased by 32,000. Healthcare and social support, a sector adjacent to the so-called government, was 66,000. Only 45,000 private sector employment, excluding sectors adjacent to the government.
Manufacturing employment grew at a soft 3,000, with only 4,000 construction. Employment in mining, including energy extraction, has declined. The sector that produced the products together was flat that month.
The private services sector has added 111,000. Retail has expanded, but this has been heavily affected by seasonal adjustments. Transport and Utilities added 1,100 jobs. I've signed a contract. Leisure and hospitality have displaced 3,000 jobs. The Information Division added 2,000 jobs and 7,000 financial sector.
The November employment figure, which was already considered a strong number, rose 49,000 from 212,000 to 261,000. Employment numbers increased by 51,000 in December, starting at 256,000.
307,000. These revisions will result in total employment in November and December 100,000 higher than previously reported.
There were severe wildfires in Southern California, with severe winter weather in most parts of the country during the period when monthly employment numbers were collected. Goldman Sachs estimates that about 0.5% of the workforce had been evacuated in January. Many economists expect the fires and weather to be heavily on employment this month. However, the Labor Ministry said these would not have an identifiable impact on national salaries or unemployment rates.
Wages rose much stronger than expected. In January, average hourly revenue for all employees on private non-farm salaries rose 17 cents (0.5%) to $35.87. Over the past 12 months, the average hourly profit margin has increased by 4.1%. In January, average hourly revenue and unapproved employees of private sector production increased by 16 cents (0.5%) to $30.84.
