... And yet you had over 50,000 fewer jobs than was originally predicted. It's amazing how that article only portrays the good things, doesn't mention any of the negatives, and gets good numbers by "revising" statistics; typical pro-Bush ass-patting.
U.S. labour market improves
By TERRY WEBER
Globe and Mail Update
The U.S. job market added 112,000 new jobs in January -- the biggest monthly gain since December, 2000 -- but the numbers still came in short of analysts' forecasts, suggesting interest rate hikes in the United States likely won't be in the cards in the immediate future.
In January, the U.S. jobless rate slid to 5.6 per cent, from 5.7 per cent. The job creation number follows an upwardly revised gain of 16,000 new positions in December, the U.S. Department of Labour said Friday.
Still, despite the increased pace of hiring in the first month of this year, the latest figures failed to result in a significant change in pre-market stock futures.
Economists had been hoping to see job gains in the range of 165,000, with some putting so-called whisper number as high as 300,000.
The January report comes as the markets try to determine how quickly the U.S. Federal Reserve is likely to begin raising interest rates. Last month, the central bank left rates alone but also dropped its long-held position that borrowing costs would stay where they are for a considerable period.
Although the broader economy is picking up steam, Friday's report still suggests the Fed is likely to wait for clearer signs of strengthening in the labour market before making a move.
“The US. employment report remained pathetic,” BMO Nesbitt Burns chief economist Sherry Cooper said in a morning commentary. “There is no reason in this report for the Fed to get interested in near-term tightening.
“So, we are left right where we were - most other job statistics are stronger than these official numbers, and the Fed is on hold.”
According to Friday's report, job increases came in the construction industry as well as a number of service-producing industries.
However, manufacturing employment continued to decline, although the pace of job losses slowed. During the month, hiring in the factory sector fell by 11,000 jobs. From September through to January, job losses in manufacturing have averaged about 20,000 positions a month.
Construction employment, however, rose by 24,000 positions in January, buoyed by continuing strength in the housing market.
As well, the retail trade sector added 76,000 new jobs.
The U.S. employment picture is likely to be a key issue as November's presidential election grows closer. Although tax cuts have been widely credited with helping keep the wider economy afloat, the U.S. job market has failed to keep pace. About 2 million jobs have been lost since U.S. President George W. Bush took office, leading some to suggest that the weak hiring picture could leave him vulnerable unless the situation improves by the time voters head to the polls.
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