United States economy adds a strong 227000 jobs in January
- Author: Adam Floyd Feb 04, 2017,
Feb 04, 2017, 0:47
However, the report also highlights the struggle ahead for Trump and underlines Obama's record on job creation.
If nothing else, Donald Trump has a rather unique opportunity to prove or disprove the Fed's thesis, thanks to that populist uprising.
Employers in the US added 227,000 non-farm jobs in January, the Bureau of Labor Statistics reported on Friday.
The retail sector added the most positions - a total of 46,000 - with construction gaining 36,000 jobs and financial activities increasing by 32,000 jobs. Average hourly earnings in January rose by 3 cents. The unemployment rate edged up 0.1 percentage point from December, but remains at a slim 4.8%.
While the report is the first released under President Trump, the data can't be credited to his administration, as it was measured before his inauguration. Today's report stands in contrast to the numbers throughout much of 2016. The uptick in business sentiment following the election and whether it led to hiring has also been up for debate.
Faucher said it would be months before the jobs figures reflected the impact of Trump's presidency.
Trump can't have it both ways; either he affects the economy or he doesn't.More news: Mexico's president cancels meeting with President Trump after border wall executive order
The report tracks non-farm payroll in the US. Growth has averaged about 2% a year since 2010, fueled by a surge in hiring that has reduced the unemployment rate near a nine-year low.
"The trend in employment growth remains more than strong enough to keep the unemployment rate trending down and adding to upward pressure on wage gains", he said.
Interestingly, January's wage growth was partly the result of higher minimum wages that took effect in cities and states across the country on Jan. 1. One key U6 component comprises workers in part-time jobs who would like but can not find full-time positions.
Trump campaigned on a platform of bringing manufacturing back to the U.S. and penalizing companies that outsourced production overseas.
Trump has made job growth a central part of his economic agenda. "The unemployment rate is holding pretty steady, under five percent". But they are right that the rate can be a flawed economic indicator. With a lower unemployment rate, workers become harder to come by, and employers have to offer more money to retain and attract talent. According to the U.S. Department of Labor, the unemployment rate was 4.8% in January. The development suggested the labor market's steady expansion in recent years may be encouraging some Americans who gave up job searches to return to the market. In the past 12 months, the economy has generated a net gain of 2.34 million jobs. Hours worked was unchanged at 34.4 after December's figure was revised up slightly.
Yahoo Finance's Rick Newman reported earlier that the economy under Obama added 9.2 million jobs, an average of 96,000 per month. The stock market has shown positive growth as well.