'Weather Also Helps' US January Job Growth Surprises

Nonfarm Payrolls Increase by 225,000 in January, Far Exceeding Expectations
Construction Jobs Expand Due to Unseasonably Warm Weather, Manufacturing Declines
Unemployment Rate Rises 0.1 Percentage Point to 3.6%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] In January, the number of nonfarm jobs in the United States increased by 225,000, far exceeding expectations.

According to the U.S. Department of Labor's announcement on the 8th (local time), the January job increase significantly surpassed the Dow Jones consensus estimate of 158,000. It also showed a more pronounced increase compared to the previous month's 147,000 job gain.

The unusually warm weather in January is believed to have affected the job market. The construction sector notably saw an increase in jobs. The construction sector added 44,000 jobs, marking the largest increase in about a year. The healthcare and transportation sectors also showed notable job growth.

On the other hand, manufacturing jobs continued to decline. In January, manufacturing jobs decreased by 12,000, mainly due to declines in the automobile and parts sectors.

However, the unemployment rate rose from 3.5% in the previous month to 3.6% in January. The market attributes this increase to the labor force participation rate rising by 0.2 percentage points to 63.4%, compared to the previous month. Last month's labor force participation rate was the highest since June 2013.

The average hourly wage rose 3.1% year-over-year to $28.44. It increased by 0.2% compared to the previous month. This also exceeded the expected 3.0% increase.

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