[Rooters] U.S. employers hired far fewer workers than expected in January and job gains for the prior month were barely revised up, suggesting a loss of momentum in the economy, even as the unemployment rate hit a new five-year low of 6.6 percent.I suppose that's because more folks are giving up? Or going on the gubbamint dole.
With construction recording the largest increase in jobs in almost seven years, cold weather probably was not a major factor in January.
But there was a silver lining in the employment report. The jobless rate dropped a tenth of a percentage point to 6.6 percent last month, the lowest since October 2008. The household survey from which the jobless rate is derived found strong gains in employment. In addition, more people came into the labor force, an encouraging sign for the labor market.
I'm confused. Maybe that was the Rooters plan.
The participation rate, or the proportion of working-age Americans who have a job or are looking for one, increased to 63 percent from 62.8 percent in December, when it fell back to the more than 35-year low hit in October.
So we're not much better than the 35-year low? Are YOU confused, too?
The unemployment rate is now flirting with the 6.5 percent level that Fed officials have said would trigger discussions over when to raise benchmark interest rates from near zero. But policymakers have made it clear that rates will not rise any time soon even if the unemployment threshold is breached.
There's an election coming up, you know!