US Economy Adds More Than 300000 Jobs During Shutdown

US Economy Adds More Than 300000 Jobs During Shutdown

How did the shutdown change the jobs report?

With respect to the headline data in the jobs report, the establishment survey informs the "jobs number", specifically the number of workers added to payrolls.

The United States added 304,000 new jobs in January, according to the latest report from the Bureau of Labor Statistics.

The healthy gain the government reported Friday illustrated the job market's durability almost a decade into the economic expansion.

"If the federal workers who were recorded as employed but absent from work had been classified as unemployed on temporary layoff, the overall unemployment rate would have been slightly higher than reported", the Labor Department wrote in a note at the bottom of the January jobs report.

The Labor Department also revised the December jobs numbers by about 90,000 jobs, taking the tally from 312,000 to a still-strong 222,000.

The government said the level of employment in March of previous year was 1,000 lower on a seasonally adjusted basis than it had reported. Average hourly wages rose 3.2 percent in January from a year earlier.

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The strong job market is also encouraging more people who weren't working to begin looking.

Meanwhile, the increase in unemployment also was the result of more workers coming off the sidelines to join the job hunt.

The 35-day government shutdown caused 800,000 workers to miss two paychecks.

The healthcare sector was undeterred by the government shutdown that went on for most of January, making 41,600 new hires last month and almost 20,000 more new hires as compared to January 2018. But the Labor Department said it had no effect on jobs creation. The unemployment rate is so low at this point that there are just fewer people who don't already have jobs.

The Fed on Wednesday kept interest rates steady but said it would be patient in raising borrowing costs further this year. The BLS reported that nonfarm payrolls rose by 304,000 and private sector payrolls rose by 296,000 in the month of January. Manufacturing payrolls increased by only 13,000 in January, reflecting the more downbeat sentiment in an array of industrial sectors that are vulnerable to slower global growth.

That data would not show up in the jobs report, but as the federal government tries to replace its aging workforce, "that's the kind of harm that will build up over years", Chamberlain said. But some say that even businesses that lost income from the shutdown likely held onto their staffs, knowing that the shutdown would only be temporary. Tourists cut back on visits to national parks, for example, thereby hurting nearby restaurants and hotels. Mining employment rose by 7,000, despite lower oil prices.

But consumer confidence fell in January for a third straight month as Americans' optimism dimmed amid the shutdown and sharp drops in the stock market.

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