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Job gains, labor force participation drive January job growth
With 225,000 jobs gained last month, NAFCU Chief Economist and Vice President of Research Curt Long said the report was "a good one," noting "sturdy job gains and rising rates of labor force participation."
"The overall participation rate climbed to its highest level since 2013, and the prime-age participation rate increased by a full percentage point over the past six months," said Long in a new NAFCU Macro Data Flash report.
Private-sector payroll employment increased by 206,000 jobs during January, with the goods-producing sector adding 32,000 jobs, while the service sector increased 174,000 jobs.
Also of note, the unemployment rate rose 0.1 percent to 3.6 percent, despite the rise in labor force participation.
Other insights from the report included mostly positive results among the major industries. The construction sector added 44,000 jobs, followed by the leisure and hospitality, and health care sectors, which added 36,000 jobs, the manufacturing sector lost 12,000 jobs during the month.
Average hourly earnings rose by seven cents to $28.44 over the time period, while year-over-year growth remained at 3.1 percent.
"Wage growth picked up slightly last month as several states’ minimum wage increases went into effect, but overall wage growth continues to lag behind expectations, providing little urgency to the Fed to increase rates," Long concluded. "NAFCU still expects that the FOMC will remain in its holding pattern for at least the first half of the year."