Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Unemployment Rate Unexpectedly Rises, Despite Strong Job Creation

Economic IndicatorsFeb 01, 2019 08:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - The U.S. employment report for January released on Friday painted a mixed picture of the labor market as job creation smashed expectations, but the jobless rate ticked up unexpectedly and wage inflation saw weakness.

Nonfarm payrolls (NFP) rose by 304,000 in January, compared to the consensus estimate for the creation of 165,000 jobs, and the 213,000 new positions that the ADP report indicated on Wednesday.

December’s reading of NFP was revised down from an initial 312,000 reading to a gain of 222,000.

The jobless rate unexpectedly rose to 4.0%. Analysts had expected it to remain unchanged at 3.9%.

Average hourly earnings advanced 0.1% month-on-month in January, below the consensus estimate of 0.3% and a slowdown from December’s increase of 0.4%.

On an annualized basis, wage inflation grew 3.2% in January, in line with expectations. Average hourly earnings had gained 3.3% the previous month in what was an upward revision from an initial 3.2% rise.

The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation. Economists generally consider an increase of 3.0% or more to be consistent with rising inflation.

Average weekly hours held steady as expected at 34.5 last month.

Government payrolls increased by 8,000 last month, compared to the prior creation of 16,000 public positions.

December’s data on government payrolls was an upward revision from the initial gain of 11,000 public positions.

The participation rate rose to 63.2% last month, from December’s reading of 63.1%.

The U-6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, increased to 8.1% in January from the prior 7.6%.

U.S. Unemployment Rate Unexpectedly Rises, Despite Strong Job Creation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Dave crys
Dave crys Feb 02, 2019 7:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Furloughed government employees and their families probably account for the rise in jobs. Also people looking for better pay but the unemployment rate will rise going forward based on the last 80 years of unemployment rates.
Tom Cordent
Tom Cordent Feb 02, 2019 7:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No, actuall, since those numbers are not counted as unemployment. Try again
Jack Shin
Jack Shin Feb 01, 2019 11:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't agree to Richards analysis. that has too many holes. it is more reasonable to say that the jobs created are not matched with the people looking for jobs. for example USA manufacturing industry is booming due to shale gas revolution. so lots of manufacturing jobs are being created. those manufacturing workers are all already hired. and jobs for ppl looking are actually filled.
Richard Mullen
Richard Mullen Feb 01, 2019 8:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's not surprising. When there are jobs, people put themselves back in the job market. If the jobs numbers continue to increase, the unemployment rate will probably rise for a while and then settle. Full employment for the U.S. is around a 5% unemployment rate.
Ravjir Urjinee
Ravjir Urjinee Feb 01, 2019 8:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When unemployment hits all time low it reverses. End of a long term Debt cycle. So from this point on expect the unemployment rate to go up and hit 25% in the next 2-3 years
Ravi Kammar
Ravi Kammar Feb 01, 2019 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nona Angel
Nona Angel Feb 01, 2019 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hallo
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email