Hickey Jobs Report Update January 2023
Hickey Jobs Report Update – U.S. adds 517,000 jobs in January 2023
Incredible momentum for the U.S. economy as we kicked off 2023 with the addition of 517,000 jobs, more than double of the previous month's hiring surge. According to the latest U.S. Bureau of Labor Statistics Jobs Report, with the addition of more jobs in the economy, the unemployment rate saw a slight decrease to 3.4 percent, reaching levels not seen since 1969.
The leading jobs gains for January 2023 were in Leisure and Hospitality, Health Care, Retail Trade, Professional Business Services, and Manufacturing. On trend from last month, hourly wages have once again risen by 10 cents to $33.03, setting the overall wage increase at 4.4 percent over the last 12 months.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
The U.S. economy added 517,000 new jobs in the month of January, more than doubling the previous month's surge of 223,000 jobs in the final month of 2022.
Leisure and Hospitality added 128,000 jobs in January, with food services and drinking places having the largest gains with the addition of 99,000 jobs in the month alone.
Following the upward trend from 2022, hourly wages once again increased in January to $33.03, a 1 cent or 0.3 percent increase. Over the previous twelve months, average hourly earnings have increased by 4.4 percent.
Gains were seen in the professional and business services industry with the addition of 82,000 new jobs this month. These gains were led by professional, scientific, and technical services with 41,000 new jobs. In 2022, this industry accounted for the addition of 63,000 jobs on average per month.
The unemployment rate decreased by 0.1 percent to 3.4 percent which is on trend with the past few months fluctuating between 3.4 to 3.7 percent since 2022. The total Labor Participation Rate and Employment Population Ratio saw a slight increase in January but both still remain below February 2020 pre pandemic levels.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, the American economy continued a hiring surge and added 517,000 jobs in the month of January, which is 294,000 more jobs than the previous month had added, despite heightened economic uncertainty.
Employment gains were seen across various industries, including Health Care, Leisure and Hospitality, Retail Trade, Transportation and Warehousing, Construction, and Manufacturing, among others.
In the month of January, the overall number of unemployed persons saw little to no change and remains at 5.7 million in the United States. The national unemployment rate decreased down to 3.4 percent this month reaching levels not seen since 1969.
The federal labor agency also revised their previous projections with the calculation for year-to-date hires, setting employment estimates in November and December combined to be 71,000 jobs higher than previously reported.
The labor force participation rate increased by 0.1 percent to 62.4 percent, and the employment population ratio, which was previously 60.1 percent, saw an increase in the month of January to 60.2 percent. Both of these measurements still remain below their pre pandemic levels.
U.S. hourly wages continued to see an increase from last year with an increase of 0.3 percent or 10 cents in January to $33.03, and over the last 12 months have increased by 4.4 percent according to the Bureau of Labor Statistics.
Key Industries
Health Care
The Health Care sectors had large gains in employment in January following the upward trend from previous months, with 58,000 new jobs across the U.S. The largest gains were seen in ambulatory health care services, adding 30,000 jobs, nursing, and residential care facilities with the addition of 17,000, and hospitals adding 11,000 new jobs in January. The Health Care industry had a large increase from 2021 in the average hiring surge, with the addition of 47,000 new jobs per month compared to the average of 9,000 per month in the previous year.
Leisure & Hospitality
The Leisure & Hospitality sector continued its upward trend by almost doubling the amount of jobs added in January from the previous month at 128,000. The Food Services and Drinking Places industry saw the biggest gain in employment of 99,000 new jobs, as well as, the Accommodation sector with the addition of 15,000 jobs. The industry managed to add 89,000 jobs on average per month in the year 2022 and is overall still below its pre pandemic February 2020 levels by 2.9 percent, or 495,000 jobs.
Retail Trade
The Retail Trade industry saw an increase in hiring in January with 30,000 new jobs, compared to the little growth they made in 2022 averaging an addition of 7,000 jobs per month. Largest gains in this industry were seen in general merchandise retailers, with 16,000 jobs, and furniture, home furnishing, electronics, and appliance retailers with 7,000 jobs. There was a slight decrease in overall employment due to a decline in health and personal care retailers with the loss of 6,000 jobs.
Transportation & Warehousing
The Transportation and Warehousing industry saw a large gain compared to the previous month of 5,000 jobs in December to 23,000 jobs in January. Support activities in the transportation and warehousing industry saw a large gain of 7,000 in this month and overall, the industry averaged a notable 23,000 jobs per month in the previous year.
Manufacturing
Manufacturing continued a hiring surge with another addition of 19,000 jobs in January. In 2022, the manufacturing industry added 33,000 jobs on average per month.
Other Notable Industries
In other notable industries, the Construction industry saw a large gain in the addition of 25,000 jobs in January and added an average of 22,000 jobs per month in 2022. The Financial industry continued to trend upwards with the addition of 6,000 jobs in January as well as the government sector with the addition of 74,000 jobs. There was little change in employment during this month in the mining, quarrying, and oil and gas extraction industries, as well as wholesale trade and information services.
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.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: