Money Matters - Simplified

US labour market data for January disappointing

Employers are apparently not willing to take on more people as companies across the nation are seeing decent profits after a long time.

It seems that the United States is still struggling to recover from the economic slowdown. Jobs data for the month of January released this month has come out with disappointing figures. Only 36000 people got a job last month, which experts say is far less than what had been expected.

The recent months have seen a steady increase in the growth of jobs in the nation so the data for January is both surprising and contrasting.

Economists had predicted that January would see substantial growth in jobs given the steady increases seen over the last several months prior to January.

Some sectors have shown promising growth. Manufacturing has seen an increase of 49000 jobs last month and there has been growth in the health and retail sectors as well. The private sector alone added 50000 jobs.

Employers cautious
Employers are apparently not willing to take on more people as companies across the nation are seeing decent profits after a long time.

Many people feel that the bad weather conditions in the United States could be another reason. The nation has recently been plagued with snowstorms, leading sectors of transportation, warehousing and construction to lay off some people.

This has led some economists to take January’s job data as an exception.

Still, the fact remains that the United States is not seeing any sharp drop in unemployment rate that is needed for economic recovery.

Steve Blitz, a senior economist for ITG Investment Research said, “You can blame weather for the number being as low as it is.”

But he added that even if one were to not consider the weather, the unemployment rate hasn’t been too encouraging.

According to an estimate, 13.9 million people still do not have a job in America, which is a discouraging picture.

Less educated candidates doing worse
The overall scenario is worse for people with less skills and education.

The unemployment rate among people who did not have a high school diploma was higher than for those with it.

The rate was 14.2 per cent for the ones without a high school diploma, while the rate among people who did not have a bachelor’s degree or higher was 4.2 per cent.

The recruiters who were taking in people were usually looking to fill vacancies which required people armed with a valid college degree.

Some sectors have shown promising growth. Manufacturing has seen an increase of 49000 jobs last month and there has been growth in the health and retail sectors as well. The private sector alone added 50000 jobs.