Other Highlights
The unexpected job strength also reflects robust gains in weather-sensitive sectors including construction, which climbed by 44,000 for the strongest growth in a year in an unseasonably warm month.
Weekly hours worked held at 34.3 hours for a third month, lower than a year ago. Economists look to hours worked for early signs of labor market softening as companies often cut hours before laying off workers.
The participation rate, or share of working-age people in the labor force, climbed to 63.4%. Steady participation rate gains reinforce Fed Chair Jerome Powell’s desire to sustain the expansion “so that the strong job market reaches more of those left behind.”
While a widely-watched manufacturing gauge signaled expansion for the first time in six months in January, the drop in payrolls for manufacturers was steeper than estimated. Employment in the sector slumped by 12,000 for a third drop in four months, driven by a decrease in payrolls for motor vehicles and parts workers.
Private employment, or hiring at companies, climbed by 206,000, topping estimates. Government payrolls climbed by 19,000 for the best gain since August.
The U-6, or the underemployment rate, climbed to 6.9% from 6.7%. This measure includes part-time workers who’d prefer a full-time position and those who aren’t actively looking, therefore offering a more comprehensive view of the health of the labor market. These figures were among series that were revised back to 1994.
This article was provided by Bloomberg News.