WASHINGTON — The January employment report released Friday showed nonfarm payrolls rose by a stronger-than-expected 200,000 but followed a net downward revision of 24,000 in the previous two months, based on data from the Bureau of Labor Statistics.
An MNI analysis had shown a tendency of analysts to overestimate payrolls in recent January reports, so the larger-than-expected reading breaks this trend.
There were larger payrolls gains for construction, leisure and hospitality, education and health services, and retail trade sectors, which were partially offset by soft readings for utilities, information, nondurable goods, and motor vehicles and parts.
Annual benchmark revisions to the establishment survey did little to alter the recent pattern of payrolls movements. September's hurricane effected data did see a downward revision to a 14,000 gain from the 38,000 previously reported, however October did see a large 60,000 upward revision, suggesting a quicker bounce back.
The unemployment rate held steady at 4.1%, for the fourth consecutive month. When seen unrounded, the rate increased in January to 4.149% from 4.095% in December due to a proportionally larger gain in unemployment than the increase in household employment.
The labor force increased by 518,000 after increasing by 64,000 last month. Household employment rose by 409,000 in January, while the number of unemployed increased by 108,000. The labor participation rate stayed at 62.7% for the fourth consecutive month.
Excluding the 2018 population control effect, the labor force would have been up by 185,000, employed would have increased by 91,000 and unemployed would have increased by 93,000. However, this had no effect on the participation rate, employment-population ratio, and the unemployment rate.
Average hourly earnings were up 0.3% in January, compared with a 0.2% gain expected by analysts but matching the whisper number, following an upward revised 0.4% gain in December. The year/year rate rose to 2.9% in January.
The overall average workweek dipped to 34.3 hours in January from 34.5 hours in December.
The Bureau of Labor Statistics reports that the government shutdown had "no discernable effects" on the major household survey measures or on nonfarm payroll estimates.
