MNI DATA IMPACT: US Jan Payrolls Up +225k, Unemp Rate 3.6%>

--Annual revisions to the jobs report "negligible"

By Ryan Hauser

     WASHINGTON (MNI) - U.S. nonfarm payrolls increased by a strong 

225,000 for the month of January, burying market expectations of a 

163,000 increase, the Bureau of Labor Statistics said Friday. 

Unemployment rose slightly to 3.6% as labor force participation ticked 

higher. 

     Jobs gains for November and December were also revised higher by 

+5,000 and +2,000, respectively. 

     The annual benchmark revisions to the jobs report came with only 

minor shifts in the historical data, cutting payrolls growth by 12,000 

for all of 2019 and resulting in "negligible" changes to the 

unemployment rate for the year, BLS said. 

     Total private payrolls grew by 206,000 in January, beating 

expectations for 150,000 in growth. Private services saw the most growth 

(+174,000) with notable job gains in construction (+44,000), healthcare 

(+36,000), and transportation and warehousing (+28,300). Unseasonably 

warm temperatures this January may have contributed to the growth 

in construction jobs. 

     Manufacturing payrolls contracted by 12,000 in January, a steeper 

drop than December's 5,000 decrease. The higher rate of 

contraction in US manufacturing jobs comes despite an improved 

manufacturing outlook seen in January's ISM Manufacturing Index and 

despite an improving outlook for international trade following the 

resolution of Phase One deal with China. 

     Government payrolls for January also jumped by 19,000 from 

December's 5,000. 

     Average hourly earnings for January grew slightly by 0.2%, slightly 

below market expectations of a 0.3% increase though still up from 

December's 0.1% increase. Earnings are up 3.1% from a year earlier. The 

length of the average work week remained flat at 34.3 hours as expected. 

     The labor force participation rate also rose slightly by 0.2% to 

63.4% while the number of persons marginally attached to the labor 

increased slightly to 1.342 million, up from 1.230 million in December. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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