Employment Situation Summary

Transmission of material in this release is embargoed until                  USDL-17-0141
8:30 a.m. (EST) Friday, February 3, 2017

Technical information:
 Household data:       (202) 691-6378  *  cpsinfo@bls.gov  *  www.bls.gov/cps
 Establishment data:   (202) 691-6555  *  cesinfo@bls.gov  *  www.bls.gov/ces

Media contact:         (202) 691-5902  *  PressOffice@bls.gov


                      THE EMPLOYMENT SITUATION -- JANUARY 2017


Total nonfarm payroll employment increased by 227,000 in January, and the unemployment
rate was little changed at 4.8 percent, the U.S. Bureau of Labor Statistics reported
today. Job gains occurred in retail trade, construction, and financial activities. 

    _____________________________________________________________________
   |                                                                     |
   |             Changes to The Employment Situation Data                |
   |                                                                     |
   |Establishment survey data have been revised as a result of the annual|
   |benchmarking process and the updating of seasonal adjustment factors |
   |using an improved methodology to select models. Also, household      |
   |survey data for January 2017 reflect updated population estimates.   |
   |See the notes at the end of this news release for more information   |
   |about these changes.                                                 |
   |_____________________________________________________________________|


Household Survey Data

Both the number of unemployed persons, at 7.6 million, and the unemployment rate, at
4.8 percent, were little changed in January. (See table A-1. For information about
annual population adjustments to the household survey estimates, see the notes at
the end of this news release and tables B and C.)

Among the major worker groups, the unemployment rate for Asians (3.7 percent) increased
in January. The jobless rates for adult men (4.4 percent), adult women (4.4 percent),
teenagers (15.0 percent), Whites (4.3 percent), Blacks (7.7 percent), and Hispanics 
(5.9 percent) showed little or no change over the month. (See tables A-1, A-2, and A-3.)

In January, the number of long-term unemployed (those jobless for 27 weeks or more)
was essentially unchanged at 1.9 million and accounted for 24.4 percent of the
unemployed. Over the year, the number of long-term unemployed has declined by 244,000.
(See table A-12.)

After accounting for the annual adjustments to the population controls, the civilian
labor force increased by 584,000 in January, and the labor force participation rate
rose by 0.2 percentage point to 62.9 percent. Total employment, as measured by the
household survey, was up by 457,000 over the month, and the employment-population
ratio edged up to 59.9 percent. (See table A-1. For additional information about the
effects of the population adjustments, see table C.)

The number of persons employed part time for economic reasons (sometimes referred to
as involuntary part-time workers) was little changed in January at 5.8 million. These
individuals, who would have preferred full-time employment, were working part time
because their hours had been cut back or because they were unable to find full-time
jobs. (See table A-8.)

In January, 1.8 million persons were marginally attached to the labor force, down by
337,000 from a year earlier. (The data are not seasonally adjusted.) These individuals
were not in the labor force, wanted and were available for work, and had looked for a
job sometime in the prior 12 months. They were not counted as unemployed because they
had not searched for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 532,000 discouraged workers in January, little
changed from a year earlier. (The data are not seasonally adjusted.) Discouraged workers
are persons not currently looking for work because they believe no jobs are available
for them. The remaining 1.2 million persons marginally attached to the labor force in
January had not searched for work for reasons such as school attendance or family
responsibilities. (See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment rose by 227,000 in January. Employment increased in
retail trade, construction, and financial activities. (See table B-1. For information
about the annual benchmark process, see the notes at the end of this news release and
table A.)

Retail trade employment increased by 46,000 over the month and by 229,000 over the
year. Three industries added jobs in January--clothing and clothing accessories
stores (+18,000), electronics and appliance stores (+8,000), and furniture and home
furnishings stores (+6,000).

Employment in construction rose by 36,000 in January, following little change in
December. Residential building added 9,000 jobs over the month, and employment
continued to trend up among residential specialty trade contractors (+11,000). Over
the past 12 months, construction has added 170,000 jobs.

Financial activities added 32,000 jobs in January, with gains in real estate (+10,000),
insurance carriers and related activities (+9,000), and credit intermediation and
related activities (+9,000). Financial activities added an average of 15,000 jobs per
month in 2016.

In January, employment in professional and technical services rose by 23,000, about in
line with the average monthly gain in 2016. Over the month, job gains occurred in
computer systems design and related services (+13,000).

Employment in food services and drinking places continued to trend up in January
(+30,000). This industry added 286,000 jobs over the past 12 months.

Employment in health care also continued to trend up in January (+18,000), following a
gain of 41,000 in December. The industry has added 374,000 jobs over the past 12 months.

Employment in other major industries, including mining and logging, manufacturing,
wholesale trade, transportation and warehousing, information, and government, showed
little change over the month.

The average workweek for all employees on private nonfarm payrolls was unchanged at
34.4 hours in January. In manufacturing, the workweek edged up by 0.1 hour to 40.8
hours, while overtime edged down by 0.1 hour to 3.2 hours. The average workweek for
production and nonsupervisory employees on private nonfarm payrolls was 33.6 hours
for the sixth consecutive month. (See tables B-2 and B-7.)

In January, average hourly earnings for all employees on private nonfarm payrolls rose
by 3 cents to $26.00, following a 6-cent increase in December. Over the year, average
hourly earnings have risen by 2.5 percent. In January, average hourly earnings of
private-sector production and nonsupervisory employees increased by 4 cents to $21.84.
(See tables B-3 and B-8.)

The change in total nonfarm payroll employment for November was revised down from
+204,000 to +164,000, and the change for December was revised up from +156,000 to
+157,000. With these revisions, employment gains in November and December combined
were 39,000 lower than previously reported. Monthly revisions result from additional
reports received from businesses since the last published estimates and from the
recalculation of seasonal factors. The annual benchmark process also contributed to
the November and December revisions. Over the past 3 months, job gains have averaged
183,000 per month.

_____________
The Employment Situation for February is scheduled to be released on Friday,
March 10, 2017, at 8:30 a.m. (EST).


                          Revisions to Establishment Survey Data

In accordance with annual practice, the establishment survey data released today have
been benchmarked to reflect comprehensive counts of payroll jobs for March 2016. These
counts are derived principally from the Quarterly Census of Employment and Wages (QCEW),
which counts jobs covered by the Unemployment Insurance (UI) tax system. The benchmark
process results in revisions to not seasonally adjusted data from April 2015 forward. 
Seasonally adjusted data from January 2012 forward are subject to revision. In addition,
data for some series prior to 2012, both seasonally adjusted and unadjusted, incorporate
other revisions.

The total nonfarm employment level for March 2016 was revised downward by 60,000
(-81,000 on a not seasonally adjusted basis, or -0.1 percent). On a not seasonally
adjusted basis, the absolute average benchmark revision over the past 10 years is
0.3 percent.

The effect of these revisions on the underlying trend in nonfarm payroll employment
was minor. For example, the over-the-year change in total nonfarm employment for 2016
was revised from 2,157,000 to 2,242,000 (seasonally adjusted). Table A presents
revised total nonfarm employment data on a seasonally adjusted basis from January to
December 2016.

All revised historical establishment survey data are available on the BLS website
at www.bls.gov/ces/data.htm. In addition, an article that discusses the benchmark
and post-benchmark revisions and other technical issues is available at
www.bls.gov/web/empsit/cesbmart.htm.


Table A. Revisions in total nonfarm employment, January-December 2016, seasonally
adjusted
(Numbers in thousands)
________________________________________________________________________________________
                  |                                    |                                
                  |                Level               |      Over-the-month change     
                  |---------------------------------------------------------------------
  Year and month  |    As     |           |            |    As    |         |           
                  |previously |    As     | Difference |previously|   As    | Difference
                  |published  |  revised  |            |published | revised |           
----------------------------------------------------------------------------------------
                  |           |           |            |          |         |           
          2016    |           |           |            |          |         |           
                  |           |           |            |          |         |           
 January..........|  143,314  |  143,211  |    -103    |    168   |    126  |     -42   
 February.........|  143,547  |  143,448  |     -99    |    233   |    237  |       4   
 March............|  143,733  |  143,673  |     -60    |    186   |    225  |      39   
 April............|  143,877  |  143,826  |     -51    |    144   |    153  |       9   
 May..............|  143,901  |  143,869  |     -32    |     24   |     43  |      19   
 June.............|  144,172  |  144,166  |      -6    |    271   |    297  |      26   
 July.............|  144,424  |  144,457  |      33    |    252   |    291  |      39   
 August...........|  144,600  |  144,633  |      33    |    176   |    176  |       0   
 September........|  144,808  |  144,882  |      74    |    208   |    249  |      41   
 October..........|  144,943  |  145,006  |      63    |    135   |    124  |     -11   
 November.........|  145,147  |  145,170  |      23    |    204   |    164  |     -40   
 December (p).....|  145,303  |  145,327  |      24    |    156   |    157  |       1   
________________________________________________________________________________________

    p = preliminary.


                Adjustments to Population Estimates for the Household Survey

Effective with data for January 2017, updated population estimates were incorported into
the household survey. Population estimates for the household survey are developed by the
U.S. Census Bureau. Each year, the Census Bureau updates the estimates to reflect new
information and assumptions about the growth of the population since the previous
decennial census. The change in population reflected in the new estimates results from
adjustments for net international migration, updated vital statistics, and estimation
methodology improvements.

In accordance with usual practice, BLS will not revise the official household survey
estimates for December 2016 and earlier months. To show the impact of the population
adjustments, however, differences in selected December 2016 labor force series based on
the old and new population estimates are shown in table B.

The adjustments decreased the estimated size of December's civilian noninstitutional
population by 831,000, the civilian labor force by 508,000, employment by 487,000, and
unemployment by 21,000. The number of persons not in the labor force was lowered
by 323,000. The unemployment rate, employment-population ratio, and labor force
participation rate were unaffected.

Data users are cautioned that these annual population adjustments can affect the
comparability of household data series over time. Table C shows the effect of the
introduction of new population estimates on the comparison of selected labor force
measures between December 2016 and January 2017. Additional information on the
population adjustments and their effect on national labor force estimates is
available at www.bls.gov/web/empsit/cps-pop-control-adjustments.pdf.


Table B. Effect of the updated population controls on December 2016 estimates by sex,
race, and Hispanic or Latino ethnicity, not seasonally adjusted
(Numbers in thousands)
______________________________________________________________________________________
                              |      |     |      |       |        |      |           
                              |      |     |      |       |  Black |      |           
                              |      |     |      |       |    or  |      |  Hispanic 
            Category          |Total | Men | Women| White | African| Asian| or Latino 
                              |      |     |      |       |American|      | ethnicity 
                              |      |     |      |       |        |      |           
______________________________|______|_____|______|_______|________|______|___________
                              |      |     |      |       |        |      |           
  Civilian noninstitutional   |      |     |      |       |        |      |           
   population.................| -831 |-403 | -428 | -469  |  -76   | -258 |    -352   
    Civilian labor force......| -508 |-272 | -236 | -277  |  -44   | -168 |    -244   
      Participation rate......|  0.0 | 0.0 |  0.0 |  0.0  |  0.0   |  0.0 |     0.0   
     Employed.................| -487 |-260 | -227 | -264  |  -41   | -164 |    -230   
      Employment-population   |      |     |      |       |        |      |           
       ratio..................|  0.0 | 0.0 |  0.0 |  0.0  |  0.0   | -0.1 |     0.0   
     Unemployed...............|  -21 | -12 |   -9 |  -13  |   -3   |   -4 |     -14   
      Unemployment rate.......|  0.0 | 0.0 |  0.0 |  0.0  |  0.0   |  0.0 |     0.0   
    Not in labor force........| -323 |-131 | -192 | -192  |  -34   |  -90 |    -109   
______________________________________________________________________________________

   NOTE:  Detail may not sum to totals because of rounding. Estimates for the above
race groups (White, Black or African American, and Asian) do not sum to totals because
data are not presented for all races. Persons whose ethnicity is identified as Hispanic
or Latino may be of any race.


Table C. December 2016-January 2017 changes in selected labor force measures,
with adjustments for population control effects
(Numbers in thousands)
______________________________________________________________________________
                                       |           |            |             
                                       |           |            |  Dec.-Jan.  
                                       | Dec.-Jan. |    2017    |   change,   
                                       |  change,  | population |   after     
                Category               |    as     |   control  | removing the
                                       | published |   effect   |  population 
                                       |           |            |   control   
                                       |           |            |  effect (1) 
_______________________________________|___________|____________|_____________
                                       |           |            |             
  Civilian noninstitutional population.|   -660    |   -831     |      171    
    Civilian labor force...............|     76    |   -508     |      584    
      Participation rate...............|    0.2    |    0.0     |      0.2    
     Employed..........................|    -30    |   -487     |      457    
      Employment-population ratio......|    0.2    |    0.0     |      0.2    
     Unemployed........................|    106    |    -21     |      127    
      Unemployment rate................|    0.1    |    0.0     |      0.1    
    Not in labor force.................|   -736    |   -323     |     -413    
______________________________________________________________________________
                                                                              
   1 This Dec.-Jan. change is calculated by subtracting the population 
control effect from the over-the-month change in the published seasonally
adjusted estimates.
   NOTE: Detail may not sum to totals because of rounding.



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Last Modified Date: February 03, 2017