How did the shutdown affect the January jobs report?

How did the shutdown affect the January jobs report?

How did the shutdown affect the January jobs report?

Total nonfarm payroll employment increased by 304,000 in January, and the unemployment rate edged up to 4.0 percent, the U.S. Bureau of Labor Statistics reported today.

Average hourly earnings for all private-sector workers rose by three cents to $27.56 per hour in January, after a 10-cent gain in December.

"It's great way to celebrate 100 consecutive months of jobs gains, which is a record".

The unemployment rate for veterans of all generations jumped from 3.2 to 3.7 percent.

However, the figures include federal government employees who were not working or being paid for most of last month. That left the annual increase in wages at 3.2 percent.

Employment gains were led by the leisure and hospitality sector, which has added 410,000 jobs over the past year. The impact of the partial federal government shutdown contributed to the uptick in these measures.

"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.

"That doesn't necessarily signal a dramatic change in the trend for the job market or the USA economy".

Job seekers line up to apply during "Amazon Jobs Day", a job fair being held at the Amazon.com Fulfillment Center in Fall River, Massachusetts, U.S., August 2, 2017. "The government shutdown is confusing because you have all these jobs being created, but the unemployment rate going higher because you have these people being included in number one and not the other". The ability of many of them to do so is itself a sign of the job market's strength, Swonk said.

"Barring further tightening in financial conditions that would negatively impact economic activity, the very strong labor market picture supports our expectations that the Fed will keep a tightening bias this year". 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. Workers earned an average $27.56 an hour last month.

Wall Street breathed a sigh of relief this month as policymakers sent strong signals they meant to pause, meaning investors could be in for an unwelcome surprise. They are counted as employed because they will receive back pay for the period.

The government also said the unemployment rate rose to 4 percent from 3.9 percent, but mostly for a technical reason: Roughly 175,000 federal workers were counted as temporarily unemployed because of the shutdown. Professional and business services employment increased by 30,000 jobs last month.

Construction employment rose by 52,000 in January.

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

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