The US economy created more jobs than expected in January, even as the
raging Covid-19 infection disrupted business activity.
Citing Reuters, Friday (4/2), a survey of companies in the employment report
overseen by the Labor Department on Friday showed nonfarm payrolls increased
by 467,000 jobs last month.
Data for December was revised higher, showing 510,000 jobs created, instead
of the previously reported 199,000.
Economists polled by Reuters had expected 150,000 jobs added in January.
Estimates range from a decrease of 400,000 to an increase of 385,000 jobs.
The resilience of the labor market may alter expectations that economic
growth will slow significantly in the first quarter after strong growth in
the fourth quarter.
Economists had braced for disappointment as the government surveyed
businesses for payroll in mid-January, when Omicron infections peaked.
Data from the Census Bureau's Household Rate Survey, published in
mid-January, showed 8.8 million people reported being out of work for
coronavirus-related reasons between December 29 and January 10. His survey
of small businesses also showed an increase in companies reporting a major
negative impact from the pandemic between January 10 and January 16.
Workers who are sick or quarantined and unpaid during the payroll survey
period are counted as unemployed in the survey even though they still have
jobs at their companies.
Lower-paid hourly workers in industries such as healthcare and recreation
and hospitality, which typically do not pay sick leave, are bearing the
brunt of the winter tide.
According to the latest government data, paid sick leave was available for
79% of civil workers in March 2021. Employment could increase further, with
coronavirus infections abating.
First-time applications for jobless benefits fell for a second straight week
last week, retreating further from a three-month high touched in
mid-January, the government reported on Thursday.
The United States reports an average of 354,399 new Covid-19 infections
daily, down sharply from more than 700,000 in mid-January, according to an
analysis of official Reuters data.
The unemployment rate was at 4.0% in January. The government introduced a
new population assumption, which caused a pause in the series.
The January unemployment rate and other ratios from household surveys cannot
be compared directly with December.
Economists and White House officials have urged not to read too much into
the weak report. The Federal Reserve is expected to start raising interest
rates next month, with economists anticipating as many as seven hikes this
year to tame inflation.
