The Bureau of Labor Statistics (BLS) published the report on the January job growth and the financial media sat jaw agape as the economy gained a whopping 304,000 jobs despite the government shutdown. The doomsayer pundits are choking on a triple-scoop of winnamins.
Adding to the financial media apoplexy the wage growth in blue-collar workers far exceeded expectations, and the ISM data on manufacturing blew all consensus predictions out of the water… leading to the following ‘scorching’ headline from CNBC:
Too funny. Enjoy the following:
(Via CNBC) January’s super strong jobs report and a solid manufacturing survey on Friday showed that recession worries may be overblown and slowdown fears are not impacting corporate hiring or dampening manufacturers’ sentiment.
The economy added a surprising 304,000 new jobs in January, well above the 165,000 expected by economists. Wages grew by an annual 3.2 percent, and were even higher for nonmanagerial workers with a 0.4 percent monthly gain.
“The labor market is still scorching,” said Ward McCarthy, chief financial economist at Jefferies. “If you look at the payroll data, the economy continues to pound out job growth. Wage growth is for real.”
ISM manufacturing was 56.6, well above the consensus of 54.2, but the important new orders component rose even more to 58.2 from 51 in December. A number above 50 reflects expansion, and while off recent highs, economists had expected the number to slow down even more. Consumer sentiment was also reported Friday and was significantly lower at 91.2, but it too beat expectations. (read more)
- In January, employment in leisure and hospitality rose by 74,000.
- Construction employment rose by 52,000 in January
- Employment in health care increased by 42,000 in January.
- Over the month, employment in transportation and warehousing rose by 27,000.
- In January, retail trade employment edged up by 21,000.
- Mining employment increased by 7,000 in January.
- Employment in professional and business services continued to trend up over the month (+30,000) and has increased by 546,000 in the past 12 months.
- Employment in manufacturing continued to trend up in January (+13,000).
“January’s Job Report demonstrated the strength of the American economy, with 304,000 jobs added as private sector job creation continued to surge despite the partial government shutdown. Significant growth in the mining, construction, and transportation and warehousing sectors led the report.
“The unemployment rate ticked up 0.1 percentage point to 4.0%, largely as a result of the temporary lapse in federal government funding, yet this is the 11th consecutive month that the unemployment rate has been at or below 4.0%.
“Average hourly earnings rose by 3.2%, marking the sixth straight month in which year over year hourly earnings have been growing at or above 3%. Average weekly earnings rose at an even more robust 3.5%, year over year.
“Another key indicator in the report pointed to the increase of the labor force participation rate to 63.2%, the highest rate since August 2013.
“As the jobs and employment data normalizes over the coming months, we are confident the nation’s economy will continue to build on the strength seen in 2018 and the first report of 2019.” ~ Labor Secretary Alexander Acosta