The Bureau of Labor Statistics released the Employment Situation Report this morning, as they generally do on the first Friday of the month. Throughout this semester, we follow at these reports and look closely at the number of jobs added, the unemployment rate and the labor force participation rate. In the month of January, the BLS estimates that 200,000 jobs were added, making it the 88th consecutive month of positive job growth and resulting in an unchanged unemployment rate of 4.1%. It is the fourth consecutive month that the unemployment rate is at 4.1%.
The labor force participation rate remained at 62.7% for the fourth consecutive month (see below). This is low by historical standards and has not increased as the economy gained steam over the past five years. This worries many economists as it seems that potentially available workers are not currently a part of the labor force.
The big number in this month's report is the average hourly earnings for private-sector workers which increased 0.34% this month, bringing the annual growth rate to 2.9%, the largest annual increase since 2009. This could be a sign that the tight labor market is finally making enough pressure to bring wages up.