US nonfarm payrolls grew by a mild seasonally adjusted 112,000 in January as the unemployment rate slipped to 5.6 per cent, the Labor Department estimated today.
It was the strongest month for payroll growth since December 2000, but it did not match expectations of gains of 150,000 or more. Payrolls have grown by 366,000 since August. Payrolls are down 716,000 since the end of the recession in November 2001.
The unemployment rate matches the lowest since January 2002. The last time it was lower was October 2001.
Economists were looking for payroll gains of about 167,000 and for the jobless rate to rise to 5.8 percent from 5.7 per cent in December.
Treasury prices rose and yields fell following the release of the data as traders focused on the below-expected payroll gain. Stock futures also rose as Wall Street eyed the falling unemployment rate.
Hours worked expanded robustly. The average workweek rose by 0.2 hours to 33.7 while total hours worked in the economy increased by 0.8 per cent.
Inflationary pressures were absent. Average hourly earnings increased 0.1 per cent to $15.49. Average hourly earnings are up 2 per cent in the past year while average weekly earnings have gained 1.7 per cent to $522.01.