WASHINGTON (AP) — In the most impressive surge for the job market since early last year, the United States added 243,000 jobs in January, far more than economists expected. The unemployment rate dropped to 8.3 percent, the lowest in three years.
Hiring accelerated across the economy and up and down the pay scale. The high-salary professional services industry added 70,000 jobs, the most in 10 months. Manufacturing added 50,000, the most in a year.
"This is a very positive employment report from almost any angle," said Brian Bethune, an economics professor at Amherst College.
The report seemed certain to shake up the presidential campaign, which is expected to turn on the economy. The unemployment rate is the lowest since February 2009, one month after President Barack Obama took office.
The report Friday from the Labor Department sent money pouring into the stock market, already off to its best start in 15 years because of improving confidence in the economy, and out of more conservative investments in bonds.
The Dow Jones industrial average shot 160 points higher to 12,865 in the first hour of trading. That is 55 points better than its highest close since the financial crisis struck in the fall of 2008.
It was the most jobs added since and March and April of last year, when 246,000 and 251,000 jobs were created. Before that, the last month with stronger hiring, excluding months skewed by temporary census jobs, was March 2006.
The government said hiring was stronger in November and December by 60,000 jobs than first estimated. It was also stronger over the past two years than previously thought. The economy added 1.82 million jobs last year, nearly twice as many as in 2010.
The unemployment rate was down two notches from the 8.5 percent reading last month. It was also the fifth consecutive month the rate has fallen, the first time that has happened since late 1994.
Employers have added an average of 201,000 jobs a month in the past three months. That's 50,000 more jobs per month than the economy averaged in each month last year.
The Labor Department's January jobs report was filled with other encouraging data and revisions. The economy added 200,000 more jobs in 2011 than first thought.
The unemployment rate is nearly a percentage point lower than over the summer, when many feared a recession was imminent.
Impressively, the job gains last month were spread across the economy. Even the beleaguered construction sector added 21,000 jobs, its second month of strong gains. That figure has probably been helped by unseasonably warm weather this winter.
The leisure and hospitality industry, which includes restaurants and hotels, added 44,000 jobs. Retailers added nearly 11,000.
The unemployment rate fell even as more people began looking for work. But a much larger number said they found work.
More jobs and higher incomes should help consumers boost spending and increase economic growth.
Even with the gains, the job market faces a long way back to full health. The nation has about 5.6 million fewer jobs than it did when the recession began in late 2007.
There are still 12.8 million people out of work, though that is the fewest since the recession ended. An additional 11 million are either working part-time but would prefer full-time work, or have stopped searching for jobs.
When all those groups are combined, nearly 24 million are considered "underemployed. The so-called "underemployment" rate ticked down in January to 15.1 percent, from 15.2 percent.
Several reports signaled this week that the economy is improving gradually. Manufacturers expanded at the fastest pace in seven months in January, a private survey showed.
And fewer people sought unemployment benefits last week, the Labor Department said. The four-week average of applications fell to its second-lowest level since June 2008. The drop shows that companies are cutting fewer jobs, which usually leads to more hiring.
Americans spent more at big chain retail stores last month compared with a year earlier. And automakers began 2012 with a strong sales gain in January. Healthier auto sales can boost a range of companies, from steel makers to parts suppliers to shippers.
The economy expanded at a 2.8 percent annual pace in the October-December quarter, a full percentage point higher than in the previous quarter.
Even so, economists expect slower growth this year. Much of the fourth quarter's expansion was due to companies ordering more goods to restock their warehouses. Restocking is likely to slow in the first three months of this year. That would drag on growth.
Europe's financial crisis could also slow demand for U.S. goods. And average wages failed to keep up with inflation last year. That leaves consumers with less spending power, which can hamper growth.
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Comments » 42
wonderful writes:
I'm fixing to blame the RepubliCANs!
Just the prospect of reasonable and accomplished folks in charge gives AAmerica new hope for REAL change and not some worthless spew from the head groundhogs!
BTW: They ain't seeing anything!
FIRE THEM! PINKSLIPS IN 2012!
I like to fire people! NOT DOING THE JOB!
GITMO! the first promise, eh?
Lemme writes:
What for it????? That is the republicans/tea party folks who will not want to hear ANY positive news regarding jobs and the economy. They will question ANYTHING positive in their effort to BLAME the President. The party of NO at their best!
GOOD JOB AMERICA!!!
Coastal writes:
8.3% of what?
676 writes:
Addressed this yesterday. Cyclical recession is ending. Expect another in 12-15 years, and on and on.
theabyss writes:
Election year folks.. suck it up!!!
results writes:
In the next few months it will be zero percent, and stay there until end of year.
upagain writes:
8% unemployment, Bin Laden dead, Iraq war over, Stock Market at high = 4 more years.
Get over it Florida Crackers.
marty99919 writes:
You guys and gals, what is wrong with you?... Always bashing each other and pointing fingers. Stop trying to say your party is better... they both reek!
Here are some stats on why the unemployment rate is now 8.3%. The sad fact of the matter is that 1.2 million people gave up looking for work last month. That is the largest spike in 30 years. Here, go educate yourselves:
http://www.zerohedge.com/news/record-...
marty99919 writes:
Oh, and here, directly from your wonderful Bureau of Labor Statistics:
http://data.bls.gov/timeseries/LNS113...
marty99919 writes:
I think Jimmy Carter was president the last time the stats were this bad.
cman writes:
Half a million jobs in the last two months, picking up steam.
theabyss writes:
"The unemployment rate was down two notches from the 8.5 percent reading last month. It was also the fifth consecutive month the rate has fallen, the first time that has happened since late 1994." OK explain this one... the economy was growing exponentially awhile back yet now we have this comment.... OK SHEEP follow the Herder!!!
marty99919 writes:
The headline should have been: "1.2 million people give up trying to return to the work force".
It's nice how they can drop a million here, a million there from those seeking jobs to improve the statistics and not mention it. How convenient.
Keep having that hope through those milky glasses you have on.
JunkYardDog_1 writes:
Exactly!
Thank You Marty.
upagain writes:
Thats also the elderly leaving workforce. Both trends are positive, jobs added and unemployment.
marty99919 writes:
And I suppose that the new workforce entering the market do not count. Wow. I don't see what you are seeing in any of the statistics when you don't selectively pick the best looking ones.
Cman has milky glasses, so yours must be glasses with rosy lenses. Could I borrow those?
upagain writes:
Sure manufacturing, factory orders. Freight volumes. What would you like to talk about? All positive.
Talk about a guy half glass empty. Hide your shoelaces.
OddsMaker writes:
Chicago politics meets the Labor Bureau.
They are fudging the "birth/death" rate and "labor participation" number to come up with the statistics they need.
My bet is they keep on fudging until the unemployment rate is below 8% by September. No sitting president has ever been re-elected with the rate over 8%.
brown writes:
DJI 12,880 today. Three years ago 8,000. Vote Obama....
upagain writes:
Exact rate is always questionable. 240k jobs were added, with courier reduction. There was NO NEGATIVE in this report.
SoldierStrong writes:
This is the hatred I speak of coming from the Left...
I welcome this news and think it is AWESOME!!
Just because you were warned by the Republicans you like to blame them... You're scapegoating...
So for once stop whining!!!
I hope it continues but the only way it will is if we stop the bullying on the world economic stage coming from China as they manipulate their currency and cotninue to make things cheaper and without conscience of our environment...
Funny how you tree hugging liberals leave that out ad 90% of what you own comes from them...
GL Party of hate.. Keep spreading that hate while the good news is out!
LOL The party of Hate...
And the party of Blame...
Pot meet kettle! I will see you and this post soon Lemme. When you keep spending your money on foreign goods and this good news turns bad.. and you blame republicans for your presidents stupidity
upagain writes:
Soldier Strong, China manipulating their currency? What the heck do you think the United States is doing for two years now. QE1 and QE2.
marty99919 writes:
Lol, Its not half empty, it's half full. I am the eternal optimist. I strongly dislike being lied to in stories such as this. Yes, you are correct, things are starting to improve very slowly. However, I say that with great caution because there are so many things to still overcome. This economy is a very long way from being healthy and any series of events will bring it back to its knees in no time.
While our Government loves to tell us that inflation is in check and all is good, it does not reflect the reality on main street. I can name any number of items that have increased in price almost 100% in the past 24 to 36 months.
This does effect every moderate to low income American and I believe that we are only beginning to see the start of massive price escalations. Maybe all those upticks in orders and activity is because everyone knows where this is all heading so they are stocking up...
marty99919 writes:
Oh golly gee willickers! The job gain is the "Seasonally Adjusted" data.
I forgot to share this with everyone:
http://economix.blogs.nytimes.com/201...
Redshoulderedhawk writes:
You may like to think you've made yourself into some sort of minor local personality or character, but the reality is that almost everyone thinks you are just a tedious local crackpot and doofus.
Balzon_Chin writes:
Smoke and mirrors
Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low
BLS Bureau of Labor Statistics Unemployment Withholding taxes A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that's not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement.
Francophile2 writes:
I love reading these comments ... suck it up ... President Barack Obama 2012!
SoldierStrong writes:
laugh...
SoldierStrong writes:
I love it how Clueless liberals like you tout good News as Obama's Accomplishments...
Then whine and blame Bush and Republicans when the Bad news comes out...
Obama loves having such Naive little sheep to lead around...
Klaatu writes:
SOLDIER GIRL IS A HYPOCRITE !
read it's past posts !!!!!!
Black meet kettle !!!!
JunkYardDog_1 writes:
Why in the world did Obama's Daddy say on January 30 2012 "the global economic system could collapse and riots on the streets of America are on the way" if everything is so Opeachy?
Read more: http://www.dailymail.co.uk/news/artic... are on the way.
Sick writes:
Lazy Americans outsourced themselves right out of a job.
Glad I made my money when I was 25. I couldn't find a crew today if I had to.
upagain writes:
Touting?? The 240k jobs are a positive, thats the fact. Anyone here that doesnt see that,is looking for a negative. Governments do not create jobs, private sector and time does.
But, if 8% unemployment, stock market all time high, Bin laden dead, Iraq war over = 4 more years. Thats also the fact.
anotherPOV writes:
Nothing depresses a Republican like good news. You guys are toast. If you are lucky Israel will bomb Iran causing a spike in fuel prices that depresses the economy. That's pretty much your only hope.
multi_million_heir writes:
barry finally paid off my mortgage like he promised and that freed up about 7k a month that i can use along with the interest from my inheritances to stimulate the economy. this my friends creates jobs! i do get tired of all the shopping everyday but its for you my fellow countrymen. every little bit helps. as for getting jobs, they are there for anyone that is seriously looking. i routinely turn down several employment offers a week! but no time to work now that things are booming. i cant knock bush though because he made getting a few million in loans that were ultimately forgiven real easy. but credit must be given to where it is due now. thanks obama!!!!
Bananaland writes:
No, I'm pretty sure it was George W. Bush. lol.
Vote Obama, P*** off a Repubican!
multi_million_heir writes:
wake up and realize it is all a game people. either you learn to play it or it plays you!
Coastal writes:
The real unemployment rate that also counts the discouraged and those working part time because they can’t find full time employment is over 15%.
The black unemployment rate stays unchanged at over 15% and black teen unemployment is now up to 50%.
15% of Americans are now on food stamps, pretty good for only an 8.3% Obama unemployment rate. And you can bet that number will increase, it has to, they keep increasing the budget every year by law.
8.3% of what? The percentage of Americans working or looking for work is at it’s lowest level since Jimmy Carter.
Yet the liberal media and useful idiots praise the Obama.
profiler writes:
MORE government LIES! As long as they can keep most people fooled there will be fewer riots and protestors to shoot, beat up, frame, etc. Here is another PERFECT example of how our fascist government works: Isn’t that a nice trick? No wonder inflation is always low for the Fed. From "the soverign investor.com" newsletter: The Fed has become quite an expert in creating this illusion of low inflation.
In 1980, it changed the way it calculated the CPI. The new methodology made the new CPI rise at less than half the original measure. If the Fed was using the original methodology, the official inflation would be much higher today.
You CANT believe ANYTHING the most corrupt terrorist organization on the face of the earth tells you.
If you want to see your gestapo government at work: http://www.killercop.com
If you want to see gestapo agents "serving" the people: http://www.copblock.com
If you want to fight back against the most corrupt terrorist organization on the face of the earth: http://www.fija.org
Keep on voting. The government loves sheep and fools that believe its propaganda. If you are tired of the lies and realize that amerika is worth nothing as a broken fascist police state..keep watching CBS, NBC, ABC, and the other government propaganda outlets.
Francophile2 writes:
Definitely a FOX watcher! HA!
furball writes:
One million and a half dropped out of the labor force. But we will take it. I'm sticking with the truth from the CBO: anemic growth and dismal outlook. Its all about the debt debt debt debt debt. No matter who wins the election the dollar and debt bubbles will burst. Read the book "Aftershock".
ChiDem writes:
8.3% of a workforce that misplaced 1.2 workers IN ONE MONTH that have dropped out of the work force. The workforce adds 200,000 every month, yet workforce is smaller now that when Obama took office.
The numbers are factitious.
These 1.2 million people were removed from the group of persons who are reported to be unemployed, dropping the pretend unemployment number to 8.3%.
There has also been no mention that while Obama is bragging that he added 3.7 million new jobs, the reality of the situation is that 4.4 million jobs have simply disappeared from the United States of America since Obama became President.
A total of 4.7 million people have stopped looking for work since the Inauguration of President Obama. Added to the 12.7 million, the total of unemployed is 17.4 million without work or about 11%.
When one adds in the 10.5 million who are working part time but would like to be working full time, we have 28 million who are unemployed or underemployed. This is an unemployment rate of 17%.
http://www.usdebtclock.org/
Here are the numbers. Do the math.
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