iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

What does US jobs data for January indicate?

9 Feb 2023 , 03:26 PM

The US economy added 517,000 non-farm jobs in January, according to data from US Bureau of Labor Statistics.  Unemployment rate stood at 3.4% in the month. Average monthly job addition in the previous year, 2022, stood at 401,000. Number of unemployed people, looking for jobs stood at 5.7 million. 

The biggest job additions were made in the leisure & hospitality sector, in the month of January. 128,000 new jobs were created in this sector in January. This sector was the worst hit by Covid lockdowns and restrictions. 99,000 of these jobs were created in restaurants & bars. Even after this addition, employment in this sector remains below the employment in February 2020 by 2.9% or 495000. February 2020 was the month before Covid lockdowns & restrictions were imposed on the economy.

74,000 jobs were created in the Government sector, in the month. A lot of these job additions were because of ending of strikes by many university workers. 

58,000 new jobs were created in the healthcare sector in US, in January. 30,000 jobs were created in the retail sector. The brick-and-mortar retail sector was also hit by Covid lockdowns and restrictions. 25,000 jobs were added in the construction sector. 

19000 jobs were added in the manufacturing sector in the month. This was below the average monthly job creation of 33,000 in this sector, in 2022.  The adverse impact of continued interest rate hikes by US Federal Reserve may be one reason for slowing down of job creation in the sector in the month.

Average hourly wage increased by 10 cents or 0.3% to $33.03 per hour in January, over that in December. In the past 1-year, average hourly wage has increased by 4.4%. Consumer Price Inflation in this period stood at 6.4%. This indicates that real income of Americans have gone down. 

Decline in real income coupled with successive interest rate hikes is likely to hurt consumption in the US economy. Consumption makes up the biggest chunk of US GDP pie. In 2022 it accounted for 68% of US GDP. Any further slowdown in Consumption will exacerbate the economic slowdown further. 

 

 

Related Tags

  • economy
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.