While the unemployment rate fell sharply to 9.0 percent in January, a mere 36,000 net new jobs were created far less than the nearly 145,000 analysts had projected.
The Obama administration said, the 0.4 percent point decline in unemployment from 9.4 percent in December to 9.0 percent in January was accounted for by a large increase in employment as measured by the household survey (separate from the payroll survey), which includes the self-employed, farm workers, very small businesses and household employees.
Nonetheless, some analysts suggest the 36,000 jobs created in January is cause for great concern as, at least 125,000 jobs are needed monthly to keep up with population growth. Besides, the January figures (50,000 jobs were added in the private sector) are particularly disappointing when viewed against private sector job growth of 128,000 and 139,000 in November and December, respectively.
Among the sectors with the largest payroll employment growth were manufacturing (+49,000), retail and wholesale trade (+36,700), and professional and business services (+31,000).
Transportation and warehousing (-38,000), construction (-32,000), finance (-10,000), and local government (-10,000) were among the sectors that subtracted from the total. The administration said, severe weather in some parts of the country may have impacted employment and hours in some industries.
Today, the administration put forward a comprehensive innovation agenda, detailing efforts to accelerate leadership in educating workers, investing in science, and building the infrastructure companies need to succeed.
“Innovation will be a key driver of the economy as we strengthen America’s position as home to the world’s best new businesses and industries, and the best jobs,” said the Chairman of the Council of Economic Advisers, Austan Goolsbee, in a statement.
