US jobless rate falls to 4.9pc but hiring slows in January

AFP, WASHINGTON : The US unemployment rate fell to an eight-year low of 4.9 per cent  but hiring slowed in January, fresh evidence of the US economy hitting a soft patch.
But there were enough signs of persistent strength in the Labor Department’s January jobs data Friday to fend off the conclusion the global slowdown is dragging the US down with it.
The country’s jobs machine generated just 151,000 net new positions last month, a sharp downshift from the average 271,000 new jobs over the previous two months.
Coming on the tail of a second very strong year for hiring -- 2.7 million new positions were generated in all of 2015 -- the one-month downturn did not by itself signal a new trend.
There were some signs of modest strength, with the unemployment rate hitting its lowest level since February 2008, at the beginning of the US recession.
In addition, growth in workers’ earnings, now closely watched as a sign of whether inflationary pressures might begin building, picked up pace. Average hourly earnings rose by 0.5 per cent from December to $25.39, and were up 2.5 per cent  year-on-year.
Also, another key barometer, the employment to population ratio, which gives a broader picture of the size of the working population, edged up to 59.6 per cent , compared with 59.3 per cent  a year ago. Sill, it ran over 63 per cent  before the 2008-2009 recession.
Defending his economic record, President Barack Obama trumpeted the new low in the jobless rate.
“The United States of America, right now, has the strongest, most durable economy in the world,” he said.
“Over the past six years, our businesses have added 14 million new jobs.” 
Hiring continued to be strongest in the retail trade, the leisure and hospitality sector, and health care. But also showing strength were construction and manufacturing, the latter having slumped in recent months.
“Talk of recession in the (manufacturing) sector is overdone, though exporters clearly are struggling,” said Ian Shepherdson of Pantheon Macroeconomics.
Yet January’s numbers also showed why many Americans are less ebullient.
The total number of unemployed persons, at 7.8 million, was only slightly better from December. Long-term unemployed Americans, 2.1 million, and those working only part-time because they cannot find full-time work, about six million, were both little-changed.
Economists were hesitant to declare one-month’s hiring slowdown a trend. “Today’s numbers are about momentum, so while 151,000 new jobs in January is below expectations and off pace from prior months, the data shows America’s recovery is continuing,” said Beth Ann Bovino, US chief economist at Standard & Poor’s Ratings Services.
“Amid all the global economic turmoil and domestic market gyrations, positive job growth, the drop in the unemployment rate to 4.9 per cent , and the uptick in wages show the US is heading in the right direction,” she said.

US jobless rate falls to 4.9pc but hiring slows in January

AFP, WASHINGTON : The US unemployment rate fell to an eight-year low of 4.9 per cent but hiring slowed in January, fresh evidence of the US economy hitting a soft patch. But there were enough signs of persistent strength in the Labor Departments January jobs data Friday to fend off the conclusion the global slowdown is dragging the US down with it. The countrys jobs machine generated just 151,000 net new positions last month, a sharp downshift from the average 271,000 new jobs over the previous two months. Coming on the tail of a second very strong year for hiring -- 2.7 million new positions were generated in all of 2015 -- the one-month downturn did not by itself signal a new trend. There were some signs of modest strength, with the unemployment rate hitting its lowest level since February 2008, at the beginning of the US recession. In addition, growth in workers earnings, now closely watched as a sign of whether inflationary pressures might begin building, picked up pace. Average hourly earnings rose by 0.5 per cent from December to $25.39, and were up 2.5 per cent year-on-year. Also, another key barometer, the employment to population ratio, which gives a broader picture of the size of the working population, edged up to 59.6 per cent , compared with 59.3 per cent a year ago. Sill, it ran over 63 per cent before the 2008-2009 recession. Defending his economic record, President Barack Obama trumpeted the new low in the jobless rate. The United States of America, right now, has the strongest, most durable economy in the world, he said. Over the past six years, our businesses have added 14 million new jobs. Hiring continued to be strongest in the retail trade, the leisure and hospitality sector, and health care. But also showing strength were construction and manufacturing, the latter having slumped in recent months. Talk of recession in the (manufacturing) sector is overdone, though exporters clearly are struggling, said Ian Shepherdson of Pantheon Macroeconomics. Yet Januarys numbers also showed why many Americans are less ebullient. The total number of unemployed persons, at 7.8 million, was only slightly better from December. Long-term unemployed Americans, 2.1 million, and those working only part-time because they cannot find full-time work, about six million, were both little-changed. Economists were hesitant to declare one-months hiring slowdown a trend. Todays numbers are about momentum, so while 151,000 new jobs in January is below expectations and off pace from prior months, the data shows Americas recovery is continuing, said Beth Ann Bovino, US chief economist at Standard Poors Ratings Services. Amid all the global economic turmoil and domestic market gyrations, positive job growth, the drop in the unemployment rate to 4.9 per cent , and the uptick in wages show the US is heading in the right direction, she said.