The Employment situation report was released by the Bureau of Labor Statistics at 8:30 a.m. on February 7, 2014. The report related that employment rose by a mere 113,000 jobs much below estimate. Even so the unemployment rate (U3) dropped again this month to a five year low at 6.6% but, real unemployment (U6) is still in double digits at 12.7%
The labor participation rate ticked up slightly but remains near 1978 levels at 63%. That number was 64.3% one year after President Obama took office.
As with the CBO report that ObamaCare would cause the loss of 2.3-2.5 million jobs, we expect the White House and Democrats to spin this data-point to reflect that more people can and are freeing themselves from the labor force to pursue other activities and hobbies.
THE EMPLOYMENT SITUATION — JANUARY 2014
Total nonfarm payroll employment rose by 113,000 in January, and the unemployment rate was little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today.
Employment grew in construction, manufacturing, wholesale trade, and mining.
Household Survey Data
Both the number of unemployed persons, at 10.2 million, and the unemployment rate, at 6.6 percent, changed little in January. Since October, the jobless rate has decreased by 0.6 percentage point.
Among the major worker groups, the unemployment rates for adult men (6.2 percent), adult women (5.9 percent), teenagers (20.7 percent), whites (5.7 percent), blacks (12.1 percent), and Hispanics (8.4 percent) showed little change in January. The jobless rate for Asians was 4.8 percent (not seasonally adjusted), down by 1.7 percentage points over the year.
The number of long-term unemployed (those jobless for 27 weeks or more), at 3.6 million, declined by 232,000 in January. These individuals accounted for 35.8 percent of the unemployed. The number of long-term unemployed has declined by 1.1 million over the year.
After accounting for the annual adjustment to the population controls, the civilian labor force rose by 499,000 in January, and the labor force participation rate edged up to 63.0 percent. Total employment, as measured by the household survey, increased by 616,000 over
the month, and the employment-population ratio increased by 0.2 percentage point to 58.8
The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) fell by 514,000 to 7.3 million in January. These individuals were working part time because their hours had been cut back or because they were unable to
find full-time work.
In January, 2.6 million persons were marginally attached to the labor force, little changed from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
Among the marginally attached, there were 837,000 discouraged workers in January, about unchanged from a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.8 million persons marginally attached to the labor force in January had not searched for work for reasons such
as school attendance or family responsibilities.
Establishment Survey Data
Total nonfarm payroll employment increased by 113,000 in January. In 2013, employment growth averaged 194,000 per month. In January, job gains occurred in construction, manufacturing, wholesale trade, and mining.
Construction added 48,000 jobs over the month, more than offsetting a decline of 22,000 in December. In January, job gains occurred in both residential and nonresidential building (+13,000 and +8,000, respectively) and in nonresidential specialty trade contractors
(+13,000). Heavy and civil engineering construction also added 10,000 jobs.
Employment in manufacturing increased in January (+21,000). Over the month, job gains occurred in machinery (+7,000), wood products (+5,000), and motor vehicles and parts (+5,000). Manufacturing added an average of 7,000 jobs per month in 2013.
In January, wholesale trade added 14,000 jobs, with most of the increase occurring in nondurable goods (+10,000).
Mining added 7,000 jobs in January, compared with an average monthly gain of 2,000 jobs in 2013.
Employment in professional and business services continued to trend up in January (+36,000). The industry added an average of 55,000 jobs per month in 2013. Within the industry, professional and technical services added 20,000 jobs in January.
Leisure and hospitality employment continued to trend up over the month (+24,000). Job growth in the industry averaged 38,000 per month in 2013.
Employment in health care was essentially unchanged in January for the second consecutive month. Health care added an average of 17,000 jobs per month in 2013.
Employment in retail trade changed little in January (-13,000). Within the industry, sporting goods, hobby, book, and music stores lost 22,000 jobs, offsetting job gains in the prior 3 months. In January, motor vehicle and parts dealers added 7,000 jobs.
In January, federal government employment decreased by 12,000; the U.S. Postal Service accounted for most of this decline (-9,000).
Employment in other major industries, including transportation and warehousing, information, and financial activities, showed little or no change over the month.
In January, the average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours. The manufacturing workweek declined by 0.2 hour to 40.7 hours, and factory overtime edged down by 0.1 hour to 3.4 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was unchanged at 33.5 hours.
Average hourly earnings for all employees on private nonfarm payrolls rose by 5 cents to $24.21. Over the year, average hourly earnings have risen by 46 cents, or 1.9 percent. In January, average hourly earnings of private-sector production and nonsupervisory employees increased by 6 cents to $20.39.
The change in total nonfarm payroll employment for November was revised from +241,000 to +274,000, and the change for December was revised from +74,000 to +75,000. With these revisions, employment gains in November and December were 34,000 higher than previously reported. Monthly revisions result from additional reports received from businesses since
the last published estimates and the monthly recalculation of seasonal factors. The annual benchmark process also contributed to the revisions in this news release.
Read the Full Report: Employment Situation Summary – February 7, 2014
- 1World Poll Question – Do you feel the U.S. economy is improving?