January Job Growth Tops 300,000 Despite Shutdown
And. With what's news? I'm Charlie Turner in New York for the Wall Street Journal. We'll talk about the strong January employment report released by the Labor Department Friday. The Wall Street Journal Sarah Cheney will join us I some headlines, and they are topped by the jobs data the economy added over three hundred thousand jobs last month with hiring solid across many sectors, the jobless rate ticked up a bit to four percent and wage growth while strong three point two percent year over year was just one tenth percent last month. Kate Warne investment strategist at Edward Jones says the Federal Reserve won't change course based on the January job growth. No, I wouldn't expect this changes. The Federal Reserve course, partly because the wage growth was right in line with last month's on a year-over-year basis three point two percent. But it was up just a tenth of a percent and Warren says companies have not yet been impacted by wage growth that would result in higher prices companies have been competing for workers more benefits and untrained programs rather than on wage. Ages. But right now, the Lovell awaits growth for seeing is really not enough to make anyone including the fed think that this is likely to push inflation dramatically higher short-term, the workforce shakeout is continuing at new online media companies. Vice media says it's cutting ten percent of the workforce or two hundred fifty jobs as part of a global restructuring the vice layoffs. Follow similar cutbacks at other digital publishers which are reckoning with an increasingly difficult online advertising market last week. Buzzfeed said, it was cutting around two hundred fifty jobs or fifteen percent of its workforce. As it tries to get a path to profitability Verizon media group cut staff at its huff post and Yahoo news units and Mike dot com and other digital publisher laid off almost all its employees before selling itself to bustle digital group refinery twenty nine cut about ten percent of its workforce in October apple apologized for a security flaw in its FaceTime video chat system and set. A software v. Is coming next week the apology came two days after New York governor Andrew Cuomo an attorney general Latisha James said the state would investigate Apple's response to a bug that allowed one FaceTime user, calling another in a conversation to eavesdrop while the recipients device was still ringing the bug affected. Facetime running on I phones, ipads, and Macs. Foxconn major supplier to apple said Friday, it has decided to go ahead with the construction of liquid crystal display factory in Wisconsin that comes two days after saying building such a plant would be economically. Unfeasible the announcement capped a week of uncertainty about plans for the factory which was kansin landed by promising four billion dollars in public support Foxconn announced its decision eighteen months ago to invest ten billion dollars to build a twenty two million square foot LCD panel plan and higher thirteen thousand employees primarily factory workers still ahead. The Wall Street Journal Sarah Cheney joins us to talk about the January and placement report. The economy may be showing signs of a slowdown but job growth really crushed it in January. The Labor Department said nonfarm payrolls grew by three hundred four thousand last month way above expectations the unemployment rate rose to four percent. The rise was due at least in parts of the government shutdown wages rose at better than a three percent rate from your earlier for the straight month joining us from Washington with more on the jobs report is Sarah Cheney of the Wall Street Journal, Sarah January Mark the one hundred straight month of job growth more than eight years. That's really a remarkable achievement. Isn't it? Yes, payrolls have not been negative since September of twenty ten and this really shows that the waiver market is humming along while we have some other economic indicators in recent months that have pointed toward a slowdown. So kind of creates a mixed picture for the US economy will shut down the government shutdown that recently concluded that had little impact on the job pictures that fair to say, yes, the jobs report is derived from two different surveys. There's the establishment survey, which is survey of businesses. And then there's a household survey. And so the payrolls our jobs number comes from the establishment survey, and the Labor Department said that there was basically no discernible impacts on payrolls growth in January. However the. The unemployment rate was impacted the Labor Department said is because the unemployment rate comes from the household survey. And so they are were, you know, hundreds of thousands of furloughed federal workers who were answering this question in the survey of whether they were working and so that caused the unemployment rate to rise to four percent. So I guess it would be fair to say that had it not been for those unusual factors. The jobless rate would have remained roughly the same or even sank. Or is that hard to say, it's really hard to say. But I mean, we can say that in January there wasn't impact on the unemployment rate. And so it's just important to kind of look past the jobless rate and look at the other numbers that we got from this report. And we saw strong payrolls growth. We saw pretty good wage growth is well above three percents for several months in a row now. And so I think just taken as a whole. All the jobs report was was a strong one. And as you mentioned, you know, wage growth it remains strong. But I suppose not enough to cause inflation worries or maybe caused the fed to change course, or anything like that. So the fed is repeated over and over that they're watching all of the economic data. And so I think we'll have lots more data coming in the next few weeks, especially given that the Commerce Department has reopened after being closed during the partial government shutdown. So we'll get new figures from the Commerce Department. And so it's really hard to say what the Federal Reserve is planning to do with regards to rate increases based off of this one report, however in the Fed's policy statements that came out just a couple of days ago seem to indicate that there wouldn't be any rate increases this year. However that that could change with all of the incoming data that we have what about particular sectors, Sarah, what we're strong hiring sectors in the January report, we saw strong, hiring and construction and leisure and hot. Hospitality. We actually saw some increase in government heroes as well. So it was pretty broad based even manufacturing went up. So it kind of saved to say that companies are hiring based off of this data. What about the lagging factors or the lagging indicators of the labor market, Sarah? The Wall Street Journal said the report also showed a broader measure of unemployment cluding those to discourage to look for work plus American stuck in part time jobs, but who want to work fulltime that was up last month. Obviously these measures can be volatile for month to month. But this rate has been elevated compared to when unemployment was similarly whoa around two thousand. So I mean, it does suggest that there is at least some pockets of slack in the labor market the use six the so called us street as you note was the highest since February two thousand eighteen. Eighteen so almost a year into shows that there's some slack left. Wall Street Journal economics reporter, Sara Cheney joining us from Washington. Thanks, sarah. Thanks, and that's what's news. I'm Charlie Turner in New York for the Wall Street Journal.