United States economy added 304000 jobs in January, unemployment at 4%

United States economy added 304000 jobs in January, unemployment at 4%

Tens of thousands of contracted federal employees that were not working during the government shutdown and are not legally entitled to compensation equal to the hours they missed may have been counted as unemployed in the DOL's numbers for January. The Bureau of Labor Statistics announced that the initial response rate for the Establishment Survey was just 61%, the lowest since 2008.

Although the economy is said by many market analysts to be slowing down, the month of January marked 100 months in a row of positive job creation, the longest streak on record.

But because of a bill signed into law by President Trump on January 16, federal employees who were furloughed or required to work without pay were guaranteed back pay after the shutdown ended. The latter translates to an annual rate of 4.9 percent (and up 3.2 percent from December 2017).

The average monthly gain for all of 2018 was 223,000.

Still, the Labor Department said that the number of people employed part time who wanted to work full time jumped by about 500,000, to 5.1 million, in January.

But in a separate survey of households that's used to calculate the unemployment rate, many of these people were counted as temporarily jobless. Fed officials are finally taking note of this important trend.

With those factors in mind, I expect a healthy gain in payrolls of 180,000, but expect to see the unemployment increase to 4 percent. They were not included in the unemployment rate, either.

Oil prices fall on doubt over US-China trade talks
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc . Americans who work for non-U.S. companies must stop doing any business with PDVSA by March 29.

CDC: Flu upgraded to 'widespread' in Tennessee
A total of 20 people have now died from the flu in IN during the 2018-2019 season, according to the state's department of health. The total also includes two people who died in previous weeks, but whose deaths were not initially linked to the flu.

Ariana Grande's tattoo now says Japanese BBQ finger
Grande has since fixed her tattoo, sharing a photo of the updated design on her Instagram story. Buzzfeed Japan reporter Eimi Yamamitsu claims the tattoo now reads "Japanese BBQ finger".

The December jobs report was a series of numbers that range from fantastic to fantastical.

In January, employment grew in several industries, including leisure and hospitality, construction, health care, and transportation and warehousing.

"This jobs report is showing no evidence of an economy slowing, certainly not falling into recession", Michelle Meyer, chief United States economist for Bank of America Merrill Lynch, told the New York Times.

An analyst at the U.S. investment bank Charles Schwab, Kully Samra, stated: "A tight labour market and healthy wage growth support economic growth, and today's data should buoy consumer spending and could boost the stock market".

On Thursday, the Employment Cost Index - a broader measure of earnings - showed that total compensation rose more in 2018 than it had since 2008. Builders added 52,000 jobs, the most in almost a year. Retail employment, which has been essentially flat over the past year, rebounded by 20,800 jobs, while professional and business services employment increased by 30,000 jobs last month. According to the New York Times, the US economy has now added jobs for 100 consecutive months.

The labor force participation rate budged slightly at 63.2 percent, with average hourly earnings improving by a marginal 3 cents to $27.56 after an adjusted 10-cent gain in December. "That doesn't necessarily signal a dramatic change in the trend for the job market or the US economy".

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.

Related Articles