January Employment Blog

By Stephen Singer, February 17, 2014

Nonfarm payroll employment increased by 113,000 in January 2014, and the unemployment rate, at 6.6 percent, decreased from a revised 6.7 percent in December. Private-sector employment grew by 142,000. Employment rose in construction, manufacturing, wholesale trade, and mining. Incorporating the revisions made for November and December 2013, monthly job gains have averaged 154,000 over the past 3 months. In 2013, employment growth averaged 194,000 per month.

Construction added 48,000 jobs in January, more than offsetting a loss in December. In January, employment rose in both residential and nonresidential building (+13,000 and +8,000, respectively) and in nonresidential specialty trade contractors (+13,000). Heavy and civil engineering construction added 10,000 jobs.

Manufacturing employment increased by 21,000 in January. Job gains occurred in machinery (+7,000), wood products (+5,000), and motor vehicles and parts (+5,000). In 2013, employment growth in manufacturing averaged 7,000 per month.

In January, wholesale trade employment rose by 14,000, mostly in nondurable goods. Over the prior 12 months, wholesale trade added an average of 8,000 jobs per month.

Mining employment increased by 7,000 in January. In 2013, employment growth in mining averaged 2,000 per month.

Professional and technical services employment rose by 20,000 in January. Job growth averaged 17,000 per month in 2013.

Employment in leisure and hospitality continued to trend up in January (+24,000). Over the prior 12 months, leisure and hospitality added an average of 38,000 jobs per month.

In January, health care employment was essentially unchanged for the second consecutive month. In 2013, health care added an average of 17,000 jobs per month.

Retail trade employment decreased slightly  in January (-13,000). A large job loss in sporting goods, hobby, book, and music stores (-22,000) offset gains in the prior 3 months. Employment rose by 7,000 in motor vehicle and parts dealers over the month.

Federal government employment declined by 12,000 in January. Over the past 12 months, federal government employment has decreased by 85,000, or 3.0 percent.

Unemployment rates continue to vary widely across the United States. North and South Dakota continue to have the lowest rates at 2.6% and 3.6% respectively. Unemployment remains highest in Rhode Island, Nevada, Illinois and California. The attached table details state that have unemployment rates significantly higher or lower than the national rate.