WASHINGTON | “JOBS, JOBS, JOBS!” Donald Trump welcomed in a tweet Friday, the dynamism of the labour market in January, driven by the sectors of construction and health.
In total, 225,000 jobs have been created during the first month of the year 2020, a number well above the projections of analysts (164 000). It is also a lot more than 147 000 recorded in December (revised up).
This week, the republican president, now cleared of the threat of impeachment, and campaign for his re-election, had already pointed to the strength of the labour market. “Jobs are on the rise, salaries soar !”, he said during his speech on the state of the Union.
In January, the unemployment rate has certainly increased by 0.1 point to 3.6%, but this can be explained by the fact that more than 183 000 people are back on the job market. It is therefore rather a sign of dynamism.
In fact, as the environment in the u.s. job market has improved in recent years to reach full employment under the era Trump, the companies have started to hire persons with disabilities, persons who have been sentenced by the courts, the same ones that were no longer recorded in the statistics for lack of finding a job.
The participation rate in the labour market rose in January, reaching 63.4 per cent (+0.2 percentage points on the month).
In detail by sector, with an added 44 000 jobs, the construction sector has benefited from a weather rather lenient in January. Usually, heavy snowfall and freezing temperatures are disrupting, on the contrary, the activity. The jobs are equally distributed between the residential and non-residential, underlines the ministry.
Of their sides, of jobs the health sector continued to rise (+36 000 for the care, +23 000 for outpatient services and +10 000 in hospitals), largely reflecting the need for care growing for the elderly due to the ageing of the population.
As in the previous months, the sector of leisure and hospitality industry continued to hire (+36 000 additional jobs). The u.s. administration note that a total of 288 000 jobs have been created in this sector over the last six months.
Wages up also
Not surprisingly, the sector of retail sales, on the contrary, lost 8 300 jobs, after a month of December with the positive (+44 900) is marked by Christmas shopping. The underlying trend remains unchanged. This sector is affected for a long time by the competition of the “shops” on-line and that of the american giant Amazon, which disappear from the landscape number of stores.
The manufacturing sector also lost jobs (-12 000), due to maturing of the automotive sector and civil aviation sector. Last month, it has, in particular, suffered from the stop of the production of the Boeing 737 MAX. The aircraft featured the american manufacturer is nailed to the ground for nearly a year after two fatal accidents close together. And Boeing had to resolve to suspend its production in early January for an indefinite period.
With 225 000 jobs created in January, the economy is dynamic, since the monthly average was 175 000 in the past year.
If this rhythm were maintained, the unemployment rate could also decrease in the coming months.
As regards wages, one of the elements, which are particularly scrutinized by the economists, they have increased by 0.25%, after +0.1% in December. Analysts expected an increase of 0.3%.
Compared to January 2019, they increased by 3.1%, a rate much higher than inflation (+2.3% in December according to the index PCI).
This new salary increase is expected to contribute to strengthen the confidence of households.
In January, the consumer confidence index — already at a high level in December — has improved, which should support household consumption, traditional engine of growth of the first economy of the world.
“In a context of fear of a recession due to the virus (which is rampant in China), the solid job creation and rising wages in January seem to give a pledge that the economic growth record of the United States) still has room to move forward,” commented Lydia Boussour and Gregory Daco, economist at Oxford Economics.
Even so, employers continue to face a global environment of volatile and uncertain, in a context of economic slowdown in the United States, should “encourage them to hire more cautiously” over the next few months, review.
The host of the White House, which has escaped this week to impeach, stressed Friday that for the time being: “employment continues to wear very well, our country continues to go very well.”