US adds 225,000 jobs in January

US employers added 225,000 non-farm jobs in January, beating Wall Street's estimates and suggesting strong growth ahead in the nation's record 11-year economic expansion.

Economists surveyed by The Wall Street Journal expected an increase of 158,000 jobs. In the past three months, the US economy has added an average of 211,000 jobs.

The unemployment rate edged up to 3.6 percent from 3.5 percent as more people entered the labor market to look for work. But that statistical quirk also shows economic strength: the labor force participation rate — the percentage of people aged 16 to 64 who are currently employed or seeking employment increased 0.2 percentage points to 63.4 percent, equaling its highest level since June 2013, the US Labor Department reported Friday.

Wages rose 3.1 percent from a year earlier as employers must pay more to attract and retain employees. The average hourly wage is now $28.44, the US Labor Department reported Friday.

Mild winter weather allowed the construction industry to hire 44,000 workers in January, above its 2019 average of 12,000. The leisure and hospitality sector added 36,000 employees.

Healthcare added 36,000 workers and employment in the professional and businesses service sector increased by 21,000. Transportation and warehousing grew by 28,000, the Labor Department said.

The job increases play out against the backdrop of a worldwide economic slowdown, fallout from the US-China trade dispute and, most recently, increased uncertainty created by the coronavirus.

Manufacturing lost 12,000 jobs due in large part to a drop in vehicles and parts.

Earlier this week, the Institute for Supply Management said its index of US manufacturing activity in January increased for the first time in six months, but gains may be fleeting because of Boeing's temporary halt in production of the 737 MAX jetliner.

The MAX was grounded worldwide following crashes in Indonesia and Ethiopia that killed a total of 346 passengers and crew. Boeing expects the plane to be re-certified for commercial service by mid-year, but the US Federal Aviation Administration has set no deadline for approval.

On Wednesday, ADP said private sector, non-farm employment grew by 291,000 jobs from December 2019 to January 2020.

The ADP and government surveys use different methodologies and therefore don't necessarily conflict. The Labor Department derives its figures from a nationwide survey. The ADP Research Institute's monthly job report is based on anonymous payroll data drawn from the company's 411,000 US private sector clients employing about 24 million workers.