HICKEY Jobs Report Update – January 2022

Hickey Jobs Report Update – U.S. surprisingly beat expectations by adding 467,000 jobs in January 2022

The U.S. economy surprisingly beat expectations for job gains in January with the addition of 467,000 workers in the first month of 2022.  Meanwhile, the unemployment rate was mostly unaffected as it remained around 4 percent, according to the latest U.S. Bureau of Labor Statistics Jobs Report.

The release of the U.S. Bureau of Labor Statistics January 2021 Employment Situation Summary, often referred to as the Jobs Report, surprised many with the addition of 467,000 jobs to the nation’s payrolls, particularly as the time period overlapped the brunt of the omicron strain surge. 

Meanwhile, the report also included major revisions to the employment estimations in November and December of last year from 249,000 to 647,000 and 199,000 to 510,000, respectively.  These significant shifts increased job hiring numbers by 709,000, collectively.  Altogether, thanks to these changes, America added over 6.6 million workers to the payrolls, by far the largest national gain in a single year.

Strongest gains were in Leisure & Hospitality, Professional & Business Services, Retail, and Transportation & Warehousing, and Local Government Education, among others.

Unemployment was relatively unchanged at 4%.  The overall labor force participation rate did increase by 0.3% with the largest return to the workforce from the 35 to 64 age cohort.  There was a large decrease in the workforce from individuals aged 65 and over that offset some gains, but overall participation is low from that cohort already.  Overall, the workforce is approximately 1.7 million workers below pre-pandemic levels.

Adding to inflation concerns, average hourly earnings increased by 23 cents, equivalent of roughly 0.7%.  The January increase results in an overall 5.7% in hourly wages over the past 12 months.  Despite the rise, earnings still trail the consumer price index of 7%, a marker for inflationary metrics.

Key Industries

Leisure and Hospitality

Leisure and hospitality added 151,000 jobs in January, clearly the largest gainer over the previous month.  The industry was led primarily by food services and drinking places at 108,000 new workers and accommodations adding 23,000 to their payrolls. Altogether, the industry is still down by 10.3% from pre-pandemic levels.

Professional and Business Services

Now outpacing pre-pandemic levels, professional and business services added 86,000 jobs.  Overall, industry employment is 511,000 higher than in February 2020, with temporary help services, computer systems design, and management and technical consulting services, leading the way.

Manufacturing

America’s manufacturing industry added 13,000 jobs in the previous month.  Durable goods added 8,000 jobs led by fabricated metal products, while nondurable goods created 5,000 new jobs, which was led by food manufacturing.  Transportation equipment manufacturing saw the greatest reduction at nearly 10,000 jobs in January.

Retail Trade

Led by general merchandise stores and health and personal care stores, the retail trade industry added 61,000 jobs over the previous month.  The heavily-impacted industry from covid is now over 60,000 jobs above pre-pandemic levels.

Transportation and Warehousing

The transportation and warehousing industry continues to make gains as the sector added 54,000 jobs in January.  Growth has been seen across the industry since February 2020, primarily led by warehousing and storage and couriers and messengers, which are up 410,000 and 236,000 from pre-pandemic levels, respectively. 

Other Notable Industries

Local government education employment rose by 29,000 in January as students return to in-person learning, health care added 18,000 jobs, and wholesale trade payrolls increased by 16,000 to round out the expanding industries.

For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.

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