US jobless rate falls to eight-year low of 4.9% in January

The US non-farm payrolls in January grew 151,000, slightly below the consensus expectations of a gain of 190,000. In detail, manufacturing employment rose by just 29,000 in January, while retail employment increased strongly by 58,000, and leisure and hospitality grew by 44,000. However, the strong increases were partially countered by unexpected weakness, with temporary help employment falling by 25,000 and other services employment rising more moderately than in earlier months.

The March 2015 employment level has been revised down by 206,000. Moreover, the rise in employment in the entire 2015 was revised up, although by a moderate 85,000.

The US jobless rate in January fell to 4.9%, an eight-year low, from 5% in December, as the alternative household survey gauge of employment rose considerably by 615,000. Out of 615,000, gains of 206,000 were because of the updated population controls. The participation rate is likely to have increased up to 62.7% from 62.6%.

Meanwhile, the average weekly hours increased slightly to 34.6 from 34.5, whereas the average hourly earnings grew more than expected by 0.5% m/m.  Base effects indicates that the annual growth rate of average hourly earnings declined from an upwardly revised 2.7% to 2.5%. However, the earnings growth seems to have a clear upward trend.