t: 020 7763 6030
Investment, Wealth Management and Financial Services

US economy adds 151,000 jobs in January

February 5, 2016

The US economy added 151,000 jobs in January, helping to push the country’s unemployment rate down to 4.9%.

The number was lower than expected and is a sharp slowdown from December, when 292,000 jobs were added.

Job losses in transport and education weighed on the numbers, the Bureau of Labor Statistics said.

Last week, figures showed that US economic growth slowed to an annual rate 0.7% in the final three months of 2015, from 2% in the previous quarter.

Early trading on Wall Street suggests investors are concerned that the slowdown in job creation could be a further signal of a weakening US economy. The main Dow Jones was down 97 points, or 0.6%, at 16,319.27 half an hour after opening.

But some analysts focused on the positive – that weaker job numbers meant another rise in interest rates was unlikely for now.

“I’m a little surprised the markets reacted somewhat negatively to it,” said Sean Lynch at the Wells Fargo Investment Institute.

“It is actually a pretty good number that should be welcomed by the equity markets, it takes some of the concern the Fed moves too quickly off the table a little bit.”

Retailing saw the highest number of jobs created in January, at 58,000, with healthcare adding 37,000 and manufacturing 29,000.

Some 39,000 jobs were lost in private education services, however, with a further 20,000 lost in transport and warehousing.

The net job creation pushed the unemployment rate below 5% – where it had stood for the previous three months – to its lowest level since early 2008.

The average hourly rate rose by 12 cents, or 0.5%, to $25.39, which Greg Anderson at BMO Capital Markets described as “shockingly good”.

Comments are closed.

Website: Treefrog Design Powered by Influence
Website: Treefrog Design