Employment numbers and my optimism are a bit sluggish today. But hey, it’s barely February.
There’s nothing like a pitiful employment situation report on a Friday morning to make you wish that you were back home in bed. At least then I’d be safe from the dead weight that is our current economy, and by safe I mean blissfully unaware.
Payroll numbers for January were released this morning, and at first glance, the Bureau of Labor Statistics is estimating that the U.S. lost 17,000 jobs over the course of last month. The only positive news to offset this drop in employment are the revised numbers from December, which indicate that the nation gained 82,000 positions that month, rather than the 18,000 that December’s BLS report initially suggested.
Despite the recent loss in jobs, the country’s unemployment rate was able to improve slightly between December and January, dropping one-tenth of a percentage point to 4.9 percent. I normally begin recapping the industries with gains in jobs first, but seeing at the payroll numbers have dipped into the negative spectrum, I figure I’ll start with the losses first:
The construction industry’s stability continues to plummet with another 27,000 positions lost in the month of January. The manufacturing sector took a hit as well, dropping 28,000 jobs over the past month. As a whole, the goods-producing industry lost 51,000 positions. State government education also cut 26,000 jobs, and the professional and business services industry lost 11,000 positions overall.
As expected, health care was one of the only occupational areas to add a significant number of jobs last month (+27,000). Ambulatory health care services gained nearly 14,000 positions, while hospitals added another 10,000. Food services and drinking places, an industry that normally adds just as many jobs as health care, was only able to post a gain of 14,800 positions in January (which is still better than most).
The average workweek for U.S. employees decreased slightly to 33.7 hours, and our average hourly earnings rose by four cents to $17.75. Over the year, the country’s average hourly earnings have increased by 3.7 percent. January’s BLS report also includes a table of revisions for January through December of last year. I consider this data table to be extremely useful, as the initial predictions for jobs gained (or lost) during one month can be dramatically revised in the months that follow.
So, what advice is there to gain from January’s BLS report? First, steer clear of jobs in the goods-producing sector in the upcoming year — or at least anything related to non-essential goods. Service is a stronger alternative, as health care continues to prove its resiliency. Oh, and there’s no need to rush out of bed on the first Friday of the month in the near future, because I doubt that the next few payroll reports will be anything to write home (or in this case, blog) about. But I suppose you never know; some trends suggest that payroll gains are lowest towards the beginning of the year. So as always, I’ll be here next month to recap and hopefully reenergize my interest in the jobs report.