US Unemployment falls to 4.9%

US Jobs report

The US economy added 151,000 jobs in January, as the unemployment rate fell to 4.9%.

Analysts had predicted the US economy would add about 190,000 jobs but would hold steady at a 5% unemployment rate.

Average hourly earnings rose more than expected, at 0.5%, while the labor-force participation rate rose to 62.7% from 62.6%.

Deutsche Bank’s John Tierney wrote in a note to clients on Friday that strong job gains above 200,000 have been boosted by reemploying the unemployed and transferring workers from non-payroll sectors.

Several economists say the downward shift is a temporary, seasonal drop related to layoffs on temporary holiday jobs, and a bit of pull back from the 292,000 jobs created in December.

 

Here’s what Wall Street was expecting from the report.

  • Nonfarm payrolls:+190,000
  • Unemployment rate: 5.0%
  • Average hourly earnings month-on-month: 0.3%
  • Average hourly earnings year-on-year: 2.2%
  • Average weekly hours worked: 34.5

More to come later in the day.

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Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at Student Loan Ninja.