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US economy adds 151,000 jobs in January | US economy adds 151,000 jobs in January |
(about 1 hour later) | |
The US economy added 151,000 jobs in January, helping to push the country's unemployment rate down to 4.9%. | The US economy added 151,000 jobs in January, helping to push the country's unemployment rate down to 4.9%. |
The number was lower than expected and is a sharp slowdown from December, when 292,000 jobs were added. | The number was lower than expected and is a sharp slowdown from December, when 292,000 jobs were added. |
Job losses in transport and education weighed on the numbers, the Bureau of Labor Statistics said. | Job losses in transport and education weighed on the numbers, the Bureau of Labor Statistics said. |
Last week, figures showed that US economic growth slowed to an annual rate 0.7% in the final three months of 2015, from 2% in the previous quarter. | Last week, figures showed that US economic growth slowed to an annual rate 0.7% in the final three months of 2015, from 2% in the previous quarter. |
Early trading on Wall Street suggests investors are concerned that the slowdown in job creation could be a further signal of a weakening US economy. The main Dow Jones was down 97 points, or 0.6%, at 16,319.27 half an hour after opening. | |
But some analysts focused on the positive - that weaker job numbers meant another rise in interest rates was unlikely for now. | But some analysts focused on the positive - that weaker job numbers meant another rise in interest rates was unlikely for now. |
"I'm a little surprised the markets reacted somewhat negatively to it," said Sean Lynch at the Wells Fargo Investment Institute. | "I'm a little surprised the markets reacted somewhat negatively to it," said Sean Lynch at the Wells Fargo Investment Institute. |
"It is actually a pretty good number that should be welcomed by the equity markets, it takes some of the concern the Fed moves too quickly off the table a little bit." | "It is actually a pretty good number that should be welcomed by the equity markets, it takes some of the concern the Fed moves too quickly off the table a little bit." |
'Shockingly good' | 'Shockingly good' |
Retailing saw the highest number of jobs created in January, at 58,000, with healthcare adding 37,000 and manufacturing 29,000. | Retailing saw the highest number of jobs created in January, at 58,000, with healthcare adding 37,000 and manufacturing 29,000. |
Some 39,000 jobs were lost in private education services, however, with a further 20,000 lost in transport and warehousing. | Some 39,000 jobs were lost in private education services, however, with a further 20,000 lost in transport and warehousing. |
The net job creation pushed the unemployment rate below 5% - where it had stood for the previous three months - to its lowest level since early 2008. | The net job creation pushed the unemployment rate below 5% - where it had stood for the previous three months - to its lowest level since early 2008. |
The average hourly rate rose by 12 cents, or 0.5%, to $25.39, which Greg Anderson at BMO Capital Markets described as "shockingly good". | The average hourly rate rose by 12 cents, or 0.5%, to $25.39, which Greg Anderson at BMO Capital Markets described as "shockingly good". |