U.S. adds jobs in January; unemployment rate inches up

WASHINGTON — U.S. non-farm payroll employment grew by 304,000 jobs in January 2019, according to the latest figures from the Bureau of Labor Statistics (BLS).

Despite the strong job growth, the unemployment rate inched up to 4 percent from December 2018's 3.9 percent, largely because of the partial government shutdown in January, according to the BLS report issued Feb. 1.

The strongest job gains were seen in leisure and hospitality (up 74,000), construction (up 52,000) and health care (up 42,000), the BLS said. Manufacturing jobs grew by 13,000 for the month, while transportation and warehousing gained 27,000 jobs.

Retail trade jobs grew by 21,000; professional and business service jobs, by 30,000; and mining jobs by 7,000, the BLS said.

The BLS report contrasted as it usually does with the Jan. 30 report from payroll services firm ADP Inc., which issues a monthly report on private sector employment. (The BLS report includes government jobs.)

Private sector jobs grew by 213,000 in January, according to ADP. The largest job gains came in medium-sized businesses (50 to 499 employees), with 84,000. Large businesses (500 employees and up) grew by 68,000 jobs, small businesses (one to 49 employees) by 63,000, the report said.

Goods-producing sectors grew by 68,000 jobs, including 33,000 in manufacturing and 35,000 in construction, ADP said.

Service-providing sectors gained 145,000 jobs, including 48,000 for professional/business services and 13,000 for trade/transportation/utilities, it said.

Franchise employment grew by 33,000 jobs, including 2,600 among auto parts and dealers, ADP said.

"The labor market has continued its pattern of strong growth, with little sign of a slowdown in sight," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said.

The National Association of Manufacturers (NAM) hailed the January job figures as continuing good news for U.S. manufacturing.

"With 13,000 jobs created in January, manufacturing continues to stand out as one of the U.S. economy's best storylines," NAM Chief Economist Chad Moutray said.

"The report shows that manufacturers are keeping their promise to hire more workers and raise wages in the wake of tax and regulatory reform," Mr. Moutray said.

Scott Paul, president of the Alliance for American Manufacturing, couched his remarks in the context of the Trump administration's ongoing trade talks with China.

"With 13,000 new jobs, manufacturing has enjoyed another strong month of growth," Mr. Paul said. "This strength in factory and overall hiring gives the administration considerable leverage into the final leg of trade talks with China.

"We hope the president and his team will put it to good use and insist on meaningful, comprehensive and measurable changes in China's unfair trade policies," he said.

Small business job creation remains strong, with 56 percent of small business owners hiring new workers or trying to hire, according to the monthly jobs report from the National Federation of Independent Business (NFIB).

However, 88 percent of business owners told the NFIB that they found few or no qualified applicants, according to the NFIB.

"Based on small business employment and hiring plans, owners aren't expecting much of an economic slowdown in the first half of the year," NFIB Chief Economist William Dunkelberg said.

"There is a significant shortage of qualified workers that could slow down businesses, but for the most part owners are working hard to hire and attract qualified employees," Mr. Dunkelberg said.