Economists and analysts preparing for a gloomy jobs report got a surprise when payroll employment rose by 467,000 in January, and the unemployment rate was largely the same at 4.0%, the U.S. Bureau of Labor Statistics reported on Friday (Feb. 4).
The number of people unemployed also came in roughly the same in January at 6.5 million. The unemployment rate is down 2.4% over the past year and the number of unemployed persons dropped by 3.7 million.
By way of comparison, before the pandemic hit, in February 2020 the unemployment rate was 3.5%, and the number of people unemployed stood at 5.7 million.
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Economists’ estimates were varied, with those surveyed by The Wall Street Journal predicting 150,000 jobs added in January. Economists polled by Bloomberg expected 250,000.
The January jobs report is the first that includes the wider omicron impact. The January jobs report survey mid-month was at a time when U.S. COVID cases were surging.
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Employment growth continued in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing.
Employment in leisure and hospitality expanded by 151,000 in January, with 108,000 jobs added in food services and drinking places and 23,000 in the accommodations industry. Since February 2020, employment in leisure and hospitality is down by 1.8 million, or 10.3 percent, according to the BLS report.
For every 100 job openings there are 60 unemployed people, the Wall Street Journal reported. Some jobs remain unfilled due to childcare shortages, early retirements and infection fears.
The labor market is expected to rebound later in 2022 as the virus subsides and ill workers return to jobs.
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