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| U.S. Added 200,000 Jobs in January; Unemployment Rate at 4.1% | |
| (about 3 hours later) | |
| The Labor Department released its official hiring and unemployment figures for January on Friday morning, providing the latest snapshot of the American economy. | The Labor Department released its official hiring and unemployment figures for January on Friday morning, providing the latest snapshot of the American economy. |
| ■ 200,000 jobs were added last month. Wall Street economists had expected an increase of about 180,000, according to Bloomberg. | ■ 200,000 jobs were added last month. Wall Street economists had expected an increase of about 180,000, according to Bloomberg. |
| ■ The unemployment rate was at 4.1 percent, the same as in December and the lowest since 2000. | ■ The unemployment rate was at 4.1 percent, the same as in December and the lowest since 2000. |
| ■ Average earnings rose by 9 cents an hour and are up 2.9 percent over the past year. | ■ Average earnings rose by 9 cents an hour and are up 2.9 percent over the past year. |
| ■ Revisions in the November and December figures produced a net loss of 24,000 jobs. | ■ Revisions in the November and December figures produced a net loss of 24,000 jobs. |
| Strong job growth continued in January. Better yet, that strength may at last be translating into faster pay increases for workers. | Strong job growth continued in January. Better yet, that strength may at last be translating into faster pay increases for workers. |
| Employers added 200,000 jobs in January, a modest uptick from December and the 88th straight month of job growth, the longest such streak on record. The pace has slowed somewhat over the last two years but remains solid. | Employers added 200,000 jobs in January, a modest uptick from December and the 88th straight month of job growth, the longest such streak on record. The pace has slowed somewhat over the last two years but remains solid. |
| “We’re feeling pretty good about the start of the year,” said Becky Frankiewicz, president of ManpowerGroup, a staffing firm. “We’re seeing growth across industries.” | “We’re feeling pretty good about the start of the year,” said Becky Frankiewicz, president of ManpowerGroup, a staffing firm. “We’re seeing growth across industries.” |
| The question — the “bazillion-dollar question,” Ms. Frankiewicz said — has long been when strong hiring would translate into strong wage gains for workers. Friday’s report may have begun to provide the answer. Average hourly earnings rose 2.9 percent in January from a year earlier, the fastest growth of the recovery so far. | The question — the “bazillion-dollar question,” Ms. Frankiewicz said — has long been when strong hiring would translate into strong wage gains for workers. Friday’s report may have begun to provide the answer. Average hourly earnings rose 2.9 percent in January from a year earlier, the fastest growth of the recovery so far. |
| Lagging pay has been a persistent economic mystery. But many economists expect wage growth to accelerate in 2018, especially if the unemployment rate continues to fall, forcing companies to compete to attract scarce workers. | Lagging pay has been a persistent economic mystery. But many economists expect wage growth to accelerate in 2018, especially if the unemployment rate continues to fall, forcing companies to compete to attract scarce workers. |
| Economists warned about reading too much into January’s strong wage numbers — several times during the recovery, wage growth has appeared to accelerate, only to fall back to earth. But they said there was little doubt that the latest numbers were an encouraging sign. | Economists warned about reading too much into January’s strong wage numbers — several times during the recovery, wage growth has appeared to accelerate, only to fall back to earth. But they said there was little doubt that the latest numbers were an encouraging sign. |
| “People have been wondering when the wages are going to start to rise in response to this tightness,” said Catherine Barrera, chief economist of the online job site ZipRecruiter. “I think that over the first six months of this year, we’re really going to start to see the wages rise.” | “People have been wondering when the wages are going to start to rise in response to this tightness,” said Catherine Barrera, chief economist of the online job site ZipRecruiter. “I think that over the first six months of this year, we’re really going to start to see the wages rise.” |
| There are also other signs that employers may be loosening their purse strings. A separate report from the Bureau of Labor Statistics this week found that private-sector wages and salaries rose 2.8 percent in the last three months of 2017, compared with a year earlier, the fastest growth since the recession. But other measures have found that pay growth is slowing. | There are also other signs that employers may be loosening their purse strings. A separate report from the Bureau of Labor Statistics this week found that private-sector wages and salaries rose 2.8 percent in the last three months of 2017, compared with a year earlier, the fastest growth since the recession. But other measures have found that pay growth is slowing. |
| With unemployment low, employers are working harder to find employees. They are becoming more willing to consider candidates with criminal records, for example, or to waive educational requirements. The car retailer AutoNation said this week that it was no longer refusing to hire workers who test positive for marijuana use — a sign of changing legal and societal norms, but also an indication that companies are rethinking hiring practices in a tight labor market. | With unemployment low, employers are working harder to find employees. They are becoming more willing to consider candidates with criminal records, for example, or to waive educational requirements. The car retailer AutoNation said this week that it was no longer refusing to hire workers who test positive for marijuana use — a sign of changing legal and societal norms, but also an indication that companies are rethinking hiring practices in a tight labor market. |
| “People who are marginally employable suddenly become highly employable in a period like this,” said Joseph Brusuelas, chief economist of RSM, a financial consulting firm. | “People who are marginally employable suddenly become highly employable in a period like this,” said Joseph Brusuelas, chief economist of RSM, a financial consulting firm. |
| The strong labor market is pulling workers off the economy’s sidelines. The labor-force participation rate — the share of adults either working or actively looking for work — has edged up recently, although it was flat in January. Diane Swonk, chief economist for the investment firm Grant Thornton, said she expected to see companies start trying to draw people into the labor force by letting them work from home or offering flexible schedules. | The strong labor market is pulling workers off the economy’s sidelines. The labor-force participation rate — the share of adults either working or actively looking for work — has edged up recently, although it was flat in January. Diane Swonk, chief economist for the investment firm Grant Thornton, said she expected to see companies start trying to draw people into the labor force by letting them work from home or offering flexible schedules. |
| Mooyah Burgers, Fries and Shakes, a 100-restaurant chain based in Texas, recently started a program to help franchisees expand their marketing efforts by hiring at-home parents and others who had not been in the labor force. The jobs are meant to appeal to people who might not be looking for traditional work: They do not require being at an office every day or having a traditional schedule. | Mooyah Burgers, Fries and Shakes, a 100-restaurant chain based in Texas, recently started a program to help franchisees expand their marketing efforts by hiring at-home parents and others who had not been in the labor force. The jobs are meant to appeal to people who might not be looking for traditional work: They do not require being at an office every day or having a traditional schedule. |
| Michael Mabry, Mooyah’s president and chief operating officer, said that kind of flexibility made sense when filling full-time slots with experienced workers was harder than ever. | Michael Mabry, Mooyah’s president and chief operating officer, said that kind of flexibility made sense when filling full-time slots with experienced workers was harder than ever. |
| “Why do I have to be pigeonholed into a particular résumé or a particular experience?” Mr. Mabry said of his recruitment approach. “I’m sure there is someone out there who can bring something different to the team. It’s just having an open mind.” | “Why do I have to be pigeonholed into a particular résumé or a particular experience?” Mr. Mabry said of his recruitment approach. “I’m sure there is someone out there who can bring something different to the team. It’s just having an open mind.” |
| In his State of the Union address Tuesday night, President Trump boasted of the strength of the American economy, citing a rebound in the manufacturing sector and a decline in the unemployment rate for African-Americans, which recently hit its lowest level on record. | In his State of the Union address Tuesday night, President Trump boasted of the strength of the American economy, citing a rebound in the manufacturing sector and a decline in the unemployment rate for African-Americans, which recently hit its lowest level on record. |
| Most economists contend that Mr. Trump deserves relatively little credit for the strong economy, which predates his election and is partly a result of a global rebound outside his control. But it is true that recent job growth has been concentrated in blue-collar sectors that Mr. Trump has often emphasized. And it is likewise true that the improving labor market is increasingly reaching groups, including African-Americans, that are often at a disadvantage. | Most economists contend that Mr. Trump deserves relatively little credit for the strong economy, which predates his election and is partly a result of a global rebound outside his control. But it is true that recent job growth has been concentrated in blue-collar sectors that Mr. Trump has often emphasized. And it is likewise true that the improving labor market is increasingly reaching groups, including African-Americans, that are often at a disadvantage. |
| Mr. Trump and other Republicans argue that the economy will also benefit from the recently passed tax law. They point to recent announcements from Walmart and other companies, which have cited tax savings in their decisions to raise wages and pay out bonuses to workers. Many economists are skeptical of such claims, regarding them as timely public relations moves. But they say the tax cuts should provide at least a modest addition to economic growth in coming years — although probably not enough to let the law pay for itself, as its backers have promised. | Mr. Trump and other Republicans argue that the economy will also benefit from the recently passed tax law. They point to recent announcements from Walmart and other companies, which have cited tax savings in their decisions to raise wages and pay out bonuses to workers. Many economists are skeptical of such claims, regarding them as timely public relations moves. But they say the tax cuts should provide at least a modest addition to economic growth in coming years — although probably not enough to let the law pay for itself, as its backers have promised. |
| “I hear my clients saying the tax bill gave them more confidence in the pro-business economy,” said Tom Gimbel, chief executive of LaSalle Network, a staffing firm. “There’s confidence coming from D.C. that they’re not going to get in the way.” | “I hear my clients saying the tax bill gave them more confidence in the pro-business economy,” said Tom Gimbel, chief executive of LaSalle Network, a staffing firm. “There’s confidence coming from D.C. that they’re not going to get in the way.” |