Non-Farm Payrolls in January fell to 157,000 from an upwardly
revised 196,000 in December, according the Bureau of Labor
Statistics. Economists had been looking for a reading of 160,000 in
Private payrolls, those jobs of the private sector excluding the
government, rose 166,000 from an upwardly revised 202,000 in
December and than estimates of 185,000 private sector jobs
Employment growth was strong in .January in mining, with the
economy adding 5,900 mining jobs, contracting, with contractors
gaining 26,200 jobs, retail, adding 32,600 jobs, and health care,
adding 22,800 jobs.
However, the growth was weighed against weakness in couriers and
messengers, which saw payrolls decline 18,500 in January, and the
government, which shed 9,000 jobs in January.
Also in January, the Unemployment Rate rose to 7.9 percent from
7.8 percent in December. Economists surveyed by Bloomberg were
looking for a reading of 7.7 percent. The labor force participation
rate, sometimes responsible for fluctuations in the unemployment
rate, was flat at 63.6 percent, where it has been since
There were many revisions in the report which saw payrolls data
for previous months revised sharply. The Bureau of Labor Statistics
released this note in the press release: "Establishment survey data
have been revised as a result of the annual benchmarking process
and the updating of seasonal adjustment factors. Also, household
survey data for January 2013 reflect updated population
Notably, the revisions for March, April, June, November, and
December showed that the economy gained at least an additional
40,000 jobs in those months than previous months.
In fact, November payrolls were revised higher by a whopping
86,000 jobs to 247,000 jobs added from 161,000 originally
estimated. July and August each saw payrolls revised lower by
28,000 and 27,000 jobs respectively. The full revisions for 2012
can be seen in the chart below.
Also, the unemployment rate for teenagers aged 16-19 was 23.45
percent in January, down from 23.54 percent in December despite a
large increase in the labor force for this age group.
In addition, a positive sign for the economy came in the form of
the percentage of employees working multiple jobs for economic
reasons. This measure declined for the second consecutive month to
4.8 percent from 4.9 percent in December.
Average weekly hours worked in January was flat from December at
34.4 hours and average weekly earnings rose to $818.03 from $816.66
in December, a gain of .16 percent. For private payrolls, average
hours worked increased 0.1 percent after rising 0.2 percent in
December. Average weekly earnings for private payrolls also rose in
January by 0.4 percent after rising 0.5 percent in December.
Markets inched higher on the news, with S&P 500 futures
extending earlier gains to 1,501.20, a gain of 7.9 points or 0.5
percent. NASDAQ futures also edged higher by 0.6 percent to
2,741.25. The euro regained the highs from earlier this morning on
the release, rallying to 1.3667 and the yen gained slightly against
the dollar but remained weaker on the session at 92.06 from earlier
highs near 92.15.
Gold extended gains on the news with front month futures rising
0.65 percent to $16,73.00 per ounce. Silver futures rallied in
tandem to $31.76 per ounce, a gain of 1.34 percent. WTI oil
declined slightly and Brent crude rallied higher by 0.68 percent
following the attack on the U.S. embassy in Ankara. The U.S.
10-year bond yield declined 1 basis point to 1.96 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.