According to Bureau of Labor Statistics data, total nonfarm payroll employment rose by 130,000 jobs in January, above market expectations for a gain of 65,000. This followed a revised gain of 48,000 in December and 41,000 in November. Job growth was led by gains in healthcare (+82,000), social assistance (+42,000), and construction (+33,000), slightly offset by declines in federal government (-34,000) and financial activities (-22,000). The unemployment rate came in at 4.3%, beating market expectations and down from 4.4% in December.
The ABA Office of the Chief Economist believes that this month’s surprise gain in job growth shows there is some resilience in a broadly easing labor market. While the unemployment rate has edged up over the past year it remains historically low and has improved over the most recent month, supporting consumer credit performance.
