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January Job Creation Trails Expectations
Not only was the figure below the expected 190,000 new jobs, but the Labor Department also downwardly revised. December’s gain to 133,000 gain and cut its estimate of jobs created in October and November, trimming a total of 59,000 jobs over the fourth quarter of 2004.
Despite the relatively weak report, the BLS said January’s unemployment rate fell to 5.2%, the lowest level since a 5% reading in September 2001.
According to the BLS data,employment in financial activities rose by 21,000 in January. Both credit intermediation and securities, commodities, and investments contributed to the gain. Over the year, employment in financial activities increased by 159,000, with most of the gain occurring during the last 6 months
Education and health services continued to add jobs
in January, increasing by 35,000. Within the
sector, health care employment rose by 15,000 over the
month and was up by 258,000 over the year.
Employment in educational services edged up in January
and the industry added 86,000 jobs over the year.
Meanwhile, in transportation and warehousing, employment
increased by 34,000 in January. Since its most
recent low in July 2003, employment in this sector has
grown by 166,000, with trucking accounting for about a
third of the growth. Within transportation and
warehousing, employment in the couriers and messengers
industry grew by 17,000 in January after a loss of 9,000
in December.
Although employment was flat in January, wholesale
trade has added 99,000 jobs since its most recent low in
August 2003. Retail trade employment edged up over
the month and has expanded by 200,000 since June 2003.
Employment in professional and business services edged up
in January. Over the year, the sector gained 537,000
jobs. Within the sector, employment in temporary
help services continued to trend up. Employment in
architectural and engineering services and in computer
systems design had been showing strength in recent
months, but was flat in January.
In January, manufacturing employment declined by 25,000,
with widespread, though mostly small, losses among its
component industries. Industries registering
significant declines included motor vehicles and parts
(-10,000), chemicals (-5,000), and semiconductors
and electronic components (-2,000). After reaching an
employment trough in February 2004, manufacturers added
85,000 workers through August.
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