The Bureau of Labor Statistics (BLS) reported an addition of 143,000 jobs in January, below the forecast of 170,000. However, upward revisions for November and December added an extra 100,000 jobs, which bolstered the overall figures. The unemployment rate improved, decreasing from 4.1% to 4.0%.
What’s the bottom line?
January’s Jobs Report showed a combination of weaknesses, such as softer than expected job growth, and strengths, including a decline in unemployment and a 0.5% rise in average hourly earnings from December.
While this earnings increase was prominently covered by the media, it’s important to note that it coincided with a reduction in hours worked. Consequently, average weekly earnings—reflective of actual take-home pay—only increased by 0.2% from December and 3.8% year-over-year, indicating a relatively modest improvement.
