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Statement of
Erica L. Groshen
Commissioner
Bureau of Labor Statistics
Friday, February 6, 2015
Nonfarm payroll employment increased by 257,000 in January,
and the unemployment rate, at 5.7 percent, was little changed.
Job gains occurred in retail trade, construction, health care,
financial activities, and manufacturing.
After incorporating revisions that increased total nonfarm
employment by 147,000 for November and December combined
(including the impact of the annual benchmark process), monthly
job gains have averaged 336,000 over the past 3 months. In 2014,
employment growth averaged 260,000 per month.
Retail trade added 46,000 jobs in January. Employment
increased in sporting goods, hobby, book, and music stores
(+9,000); motor and vehicle parts dealers (+8,000); and nonstore
retailers (+6,000).
Construction employment increased by 39,000 in January.
Job gains occurred in residential and nonresidential building
(+13,000 and +7,000, respectively). In 2014, employment growth
in construction averaged 28,000 per month.
Health care added 38,000 jobs in January. Employment rose
in offices of physicians (+13,000), hospitals (+10,000), and
nursing and residential care facilities (+7,000). Job growth in
health care averaged 26,000 per month in 2014.
Employment in financial activities increased by 26,000 in
January, with about half the gain in insurance carriers and
related activities (+14,000). Employment in the securities
industry rose by 5,000. In 2014, financial activities added
159,000 jobs.
Manufacturing employment increased by 22,000 in January.
Job gains occurred in motor vehicles and parts (+7,000) and wood
products (+4,000). Over the past 12 months, employment in
manufacturing has grown by 228,000.
Employment in professional and technical services rose by
33,000 in January. Within the industry, job gains occurred in
architectural and engineering services (+8,000) and computer
systems design (+8,000). In 2014, professional and technical
services added an average of 25,000 jobs per month.
Food services and drinking places employment continued to
trend up (+35,000) in January, in line with average job growth
in 2014.
Average hourly earnings of all employees on private
nonfarm payrolls rose by 12 cents to $24.75 in January,
following a decline of 5 cents in December. Over the past 12
months, average hourly earnings have risen by 2.2 percent. From
December 2013 to December 2014, the Consumer Price Index for All
Urban Consumers (CPI-U) increased by 0.7 percent.
Turning to the survey of households, the unemployment rate
was little changed at 5.7 percent in January. The jobless rate
has shown no net change since October. There were 9.0 million
unemployed persons in January, little different from the prior
month. The number of unemployed persons who had been jobless for
27 weeks or more was essentially unchanged (2.8 million). These
individuals accounted for 31.5 percent of the total unemployed.
The labor force participation rate increased by 0.2
percentage points to 62.9 percent in January, following a
decline of the same magnitude in the prior month. The
employment-population ratio was little changed at 59.3 percent
in January. Among the employed, the number of persons working
part time for economic reasons was 6.8 million, about unchanged
over the month. These individuals would have preferred full-time
employment, but had their hours cut or were unable to find full-
time work.
Following our usual practice, there were routine annual
adjustments to the data from our two surveys. The establishment
survey data released today reflect the incorporation of annual
benchmark revisions. Each year, we re-anchor our sample-based
survey estimates to full universe counts of employment,
primarily derived from the Quarterly Census of Employment and
Wages, which enumerates jobs covered by the unemployment
insurance tax system. (Additional information about the
benchmark revision and its impact is contained in our news
release and on our website at
www.bls.gov/web/empsit/cesbmart.htm.)
Household survey data for January reflect updated
population estimates from the U.S. Census Bureau. This year, the
impact of the new controls on the unemployment rate and other
ratios is negligible. (Further information can be found in our
news release and on our website at www.bls.gov/cps/cps15adj.pdf.)
In summary, nonfarm payroll employment increased by
257,000 in January, and the unemployment rate was little changed
at 5.7 percent.