U.S. employers added 304,000 jobs in January, soaring past expectations

U.S. employers added 304,000 jobs in January, soaring past expectations

In January 2018, healthcare added 23,700 jobs.

But the USA economy is still facing the reduced impact of tax cuts and weakening growth in China and Europe. The unemployment rate rose from 3.9% to 4% due to federal employees who were furloughed by the government shutdown being counted as unemployed. These figures continue the job growth of the December 2018 jobs report. Still, hiring has accelerated since last summer, a development that has surprised economists because hiring typically slows when unemployment is so low. "We have, by far, the strongest economy in the world", wrote President Donald Trump on Twitter.

In January, the number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.3 million and accounted for 19.3 percent of the unemployed.

China's economy is decelerating sharply and Italy's economy has entered recession, exacerbating fears that slower global growth will cut into US exports.

Restaurants added almost 37,000 jobs in January, according to newly released federal data, as the industry shrugs off labor-cost fears to continue its long-term expansion.

Most sectors of the economy reported solid hiring gains in January.

Retail jobs, however, have stayed essentially flat over the past year as e-commerce - usually represented in the transportation and warehousing category - has taken over an increasing share of employment in the sector.

The ongoing demand for workers is leading some businesses to offer higher pay to attract and keep staff.




Average workers' wages kept growing, with hourly earnings for non-managers rising 3.4 percent from the year before. The Labor Department said the government shutdown that lasted more than a month had "no discernible impacts" on hiring and wages, but it did contribute to the uptick in unemployment. And they classified furloughed workers differently.

"They've enjoyed two decades of minimal pay growth in general", she said. Manufacturing payrolls increased by only 13,000 in January, reflecting the more downbeat sentiment in an array of industrial sectors that are vulnerable to slower global growth.

This could put pressure on the Federal Reserve to resume raising interest rates later this year, even though markets now expect no more Fed hikes this year.

North said the rate is almost a flawless number, "not too hot" so as to spark fears of inflation, but "not too cold" to raise concerns about wage stagnation. Professional and business services employment increased by 30,000 jobs last month.

These numbers beat expectations, with Bloomberg economists predicting 165,000 jobs would be added for the month of January. "Despite the partial government shutdown, the private job market remains on a healthy footing because of pro-growth tax cuts and deregulation".

Construction employment rose by 52,000 in January. Builders added 52,000 jobs, the most in almost a year.

Norland continued: "This points towards a moderation in the pace of job creation going forward".

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