January 2001 Employment Situation

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

Unemployment increased in January, and payroll employment rose by 268,000, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Construction employment increased by 145,000, after seasonal adjustment, as unusual weather patterns over the last 3 months contributed to extremely light layoffs in January. Manufacturing experienced another sizable employment decline over the month. Average hourly earnings were unchanged.

Unemployment (Household Survey Data)

The number of unemployed rose by about 300,000 to nearly 6.0 million, pushing the unemployment rate from 4.0 to 4.2 percent. The jobless rate had ranged from 3.9 to 4.1 percent since October 1999. The unemployment rates for each of the major worker groups--adult men (3.6 percent), adult women (3.6 percent), teenagers (13.8 percent), whites (3.6 percent), blacks (8.4 percent), and Hispanics (6.0 percent)--were marginally higher in January. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

Total employment was essentially unchanged at 136.0 million, seasonally adjusted, in January. The employment-population ratio--the proportion of the population age 16 and older with jobs--was 64.5 percent, unchanged from December. The civilian labor force, 142.0 million, grew by 466,000 and the labor force participation rate rose to 67.3 percent. (See table A-1.)

About 7.1 million persons (not seasonally adjusted) held more than one job in January. These multiple jobholders represented 5.3 percent of total employment, compared with 5.7 percent a year earlier. (See table A-10.)

Persons Not in the Labor Force (Household Survey Data)

About 1.3 million persons (not seasonally adjusted) were marginally attached to the labor force in January, about the same number as a year earlier. These people wanted and were available to work and had looked for a job sometime in the prior 12 months. They were not counted as unemployed, however, because they had not actively searched for work in the 4 weeks preceding the survey. The number of discouraged workers was 303,000 in January, up from 234,000 a year earlier. Discouraged workers, a subset of the marginally attached, were not currently looking for work specifically because they believed no jobs were available for them. (See table A-10.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment increased by 268,000 in January to 132.1 million, seasonally adjusted, following a gain of only 19,000 (as revised) in December. Unusually large employment increases in construction and the federal government (after seasonal adjustment) contributed significantly to the January gain. Large job losses continued in manufacturing, and growth was moderate in services. (See table B-1.)

In the goods-producing sector, construction employment rose by 145,000 in January, after seasonal adjustment. The weather in November and December was particularly severe, resulting in unusually large layoffs in those months. January's weather was relatively mild, and layoffs in outside activities such as roofing, masonry, and heavy construction (such as bridges and highways) were smaller than usual for this time of year. This resulted in a large employment increase, after seasonal adjustment.

Mining added 5,000 jobs in January. Most of the employment gain was due to increases in oil and gas extraction, which has added 29,000 jobs since August 1999.

Employment in manufacturing fell by 65,000 in January. This industry has shed 254,000 jobs since last June. In January, manufacturing job losses were widespread. The largest decline was in motor vehicles, where payrolls were reduced by 38,000, reflecting auto plant shutdowns for inventory control. Employment also fell in fabricated metals (13,000) and in rubber and plastics (4,000). Employment declines continued in lumber, which lost 6,000 jobs in January. Food products gained 11,000 jobs, after losses in November and December.

In the service-producing sector, the services industry added 81,000 jobs in January, slightly below the average monthly gain for the prior 12 months. Declines continued in help supply services, where employment fell by 39,000 in January. Employment in this industry has fallen by 184,000 since last April. In contrast, health services employment rose by 30,000, with increases in hospitals (12,000) and doctor's offices (11,000). Employment in amusement and recreation services rose by 20,000 jobs in January. Engineering and management services added 10,000 jobs, while employment in computer services was little changed.

Employment in retail trade grew modestly in January, with an increase of 27,000. Most of this gain occurred in miscellaneous retail establishments. Employment in wholesale trade declined for the second straight month.

Employment in finance, insurance, and real estate rose by 29,000 in January. Strength in home sales and refinancing activities helped boost employment in real estate by 8,000 and in mortgage banks by 5,000. Insurance added 6,000 jobs in January.

In government, federal employment rose by 37,000 over the month, partly reversing declines in November and December that totaled 55,000. Hiring of postal service workers during the holiday season was lighter than normal, which led to smaller seasonal layoffs than usual in January.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls rose by 0.2 hour in January to 34.3 hours, seasonally adjusted, offsetting a 0.2-hour decline in December. The manufacturing workweek increased by 0.5 hour to 40.9 hours, following a decline of 0.8 hour in December that was partly due to severe winter weather across much of the country. Manufacturing overtime, which fell by 0.3 hour in December, rose by 0.1 hour in January to 4.1 hours. Since last July, the factory workweek has fallen by 0.8 hour and overtime by 0.5 hour. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls was up by 0.9 percent to 151.8 (1982=100), seasonally adjusted. The manufacturing index rose by 0.8 percent to 102.6. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls were unchanged in January at $14.02, seasonally adjusted, following 3 months of above-average gains. Average weekly earnings rose by 0.6 percent in January to $480.89. Over the year, average hourly earnings rose by 3.9 percent and average weekly earnings grew by 3.3 percent. (See table B-3.)