THE EMPLOYMENT SITUATION -- JANUARY 2012
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Total nonfarm payroll employment rose by 243,000 in January, and the

unemployment rate decreased to 8.3 percent, the U.S. Bureau of Labor

Statistics reported today. Job growth was widespread in the private

sector, with large employment gains in professional and business

services, leisure and hospitality, and manufacturing. Government

employment changed little over the month.

 

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  |                                                                 |

  |            Changes to The Employment Situation Data             |

  |                                                                 |

  |Establishment survey data have been revised as a result of the   |

  |annual benchmarking process and the updating of seasonal         |

  |adjustment factors. Also, household survey data for January 2012 |

  |reflect updated population estimates. See the notes at the end of|

  |the news release for more information about these changes.       |

  |                                                                 |

   ----------------------------------------------------------------- 

 

Household Survey Data

 

The unemployment rate declined by 0.2 percentage point in January to

8.3 percent; the rate has fallen by 0.8 point since August. (See table

A-1.) The number of unemployed persons declined to 12.8 million in

January. (See the note and tables B and C for information about annual

population adjustments to the household survey estimates.)

 

Among the major worker groups, the unemployment rates for adult men

(7.7 percent) and blacks (13.6 percent) declined in January. The

unemployment rates for adult women (7.7 percent), teenagers (23.2

percent), whites (7.4 percent), and Hispanics (10.5 percent) were

little changed. The jobless rate for Asians was 6.7 percent, not

seasonally adjusted. (See tables A-1, A-2, and A-3.)

 

In January, the number of job losers and persons who completed

temporary jobs fell to 7.3 million. The number of long-term unemployed

(those jobless for 27 weeks or more) was little changed at 5.5 million

and accounted for 42.9 percent of the unemployed. (See tables A-11 and

A-12.)

 

After accounting for the annual adjustments to the population

controls, the employment-population ratio (58.5 percent) rose in

January, while the civilian labor force participation rate held at

63.7 percent. (See table A-1. For additional information about the

effects of the population adjustments, see table C.)

 

The number of persons employed part time for economic reasons, at 8.2

million, changed little in January. These individuals were working

part time because their hours had been cut back or because they were

unable to find a full-time job. (See table A-8.)

 

In January, 2.8 million persons were marginally attached to the labor

force, essentially unchanged from a year earlier. (The data are not

seasonally adjusted.) These individuals were not in the labor force,

wanted and were available for work, and had looked for a job sometime

in the prior 12 months. They were not counted as unemployed because

they had not searched for work in the 4 weeks preceding the survey.

(See table A-16.)

 

Among the marginally attached, there were 1.1 million discouraged

workers in January, little different from a year earlier. (The data

are not seasonally adjusted.) Discouraged workers are persons not

currently looking for work because they believe no jobs are available

for them. The remaining 1.7 million persons marginally attached to the

labor force in January had not searched for work in the 4 weeks

preceding the survey for reasons such as school attendance or family

responsibilities. (See table A-16.)

 

Establishment Survey Data

 

Total nonfarm payroll employment rose by 243,000 in January. Private-

sector employment grew by 257,000, with the largest employment gains

in professional and business services, leisure and hospitality, and

manufacturing. Government employment was little changed over the

month. (See table B-1.)

 

Professional and business services continued to add jobs in January

(+70,000). About half of the increase occurred in employment services

(+33,000). Job gains also occurred in accounting and bookkeeping

(+13,000) and in architectural and engineering services (+7,000).

 

Over the month, employment in leisure and hospitality increased by

44,000, primarily in food services and drinking places (+33,000).

Since a recent low in February 2010, food services has added 487,000

jobs.

 

In January, health care employment continued to grow (+31,000). Within

the industry, hospitals and ambulatory care services each added 13,000

jobs.

 

Wholesale trade employment increased by 14,000 over the month. Since a

recent employment low in May 2010, wholesale trade has added 144,000

jobs.

 

Employment in retail trade continued to trend up in January. Job gains

in department stores (+19,000), health and personal care stores

(+7,000), and automobile dealers (+7,000) were partially offset by

losses in clothing and clothing accessory stores (-14,000). Since an

employment trough in December 2009, retail trade has added 390,000

jobs.

 

In January, employment in information declined by 13,000, including a

loss of 8,000 jobs in the motion picture and sound recording industry.

 

In the goods-producing sector, manufacturing added 50,000 jobs. Nearly

all of the increase occurred in durable goods manufacturing, with job

growth in fabricated metal products (+11,000), machinery (+11,000),

and motor vehicles and parts (+8,000). Durable goods manufacturing has

added 418,000 jobs over the past 2 years.

 

Employment in construction increased by 21,000 in January, following a

gain of 31,000 in the previous month. Over the past 2 months,

nonresidential specialty trade contractors added 30,000 jobs.

 

Mining added 10,000 jobs in January, with most of the gain in support

activities for mining (+8,000). Since a recent low in October 2009,

mining employment has expanded by 172,000.

 

Government employment changed little in January. Over the past 12

months, the sector has lost 276,000 jobs, with declines in local

government; state government, excluding education; and the U.S. Postal

Service.

 

The average workweek for all employees on private nonfarm payrolls was

unchanged in January. The manufacturing workweek increased by 0.3 hour

to 40.9 hours, and factory overtime increased by 0.1 hour to 3.4

hours. The average workweek for production and nonsupervisory

employees on private nonfarm payrolls edged up by 0.1 hour to 33.8

hours. (See tables B-2 and B-7.)

 

In January, average hourly earnings for all employees on private

nonfarm payrolls rose by 4 cents, or 0.2 percent, to $23.29. Over the

past 12 months, average hourly earnings have increased by 1.9 percent.

In January, average hourly earnings of private-sector production and

nonsupervisory employees edged up by 2 cents, or 0.1 percent, to

$19.62. (See tables B-3 and B-8.)

 

The change in total nonfarm payroll employment for November was

revised from +100,000 to +157,000, and the change for December was

revised from +200,000 to +203,000. Monthly revisions result from

additional sample reports and the monthly recalculation of seasonal

factors. The annual benchmark process also contributed to these

revisions.

 

____________

The Employment Situation for February is scheduled to be released on

Friday, March 9, 2012, at 8:30 a.m. (EST).

 

 

 

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  |                                                                 |

  |                 Changes to the Household Survey                 |

  |                                                                 |

  |Effective with the collection of household survey data for       |

  |January 2012, the questions on race and Hispanic or Latino       |

  |ethnicity were modified to incorporate minor wording changes.    |

  |                                                                 |

  |In January 2012, the Census Bureau, which conducts the household |

  |survey, began a year-long process of reorganizing its regional   |

  |office structure; for more information on these changes see      |

  |www.census.gov/newsroom/pdf/General_QAs_FINAL2.pdf. Both the     |

  |Census Bureau and the Bureau of Labor Statistics will monitor    |

  |survey operations during the transition period. No impact on the |

  |employment and unemployment estimates from the survey is         |

  |anticipated from this organizational change.                     |

  |                                                                 |

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                  Revisions to Establishment Survey Data

  

  In accordance with annual practice, the establishment survey data

  released today have been revised to reflect comprehensive counts of

  payroll jobs, or benchmarks. These counts are derived principally from

  unemployment insurance tax records for March 2011. In addition, the

  data were updated to the 2012 North American Industry Classification

  System (NAICS) from the 2007 NAICS. This update resulted in minor

  changes to several detailed industries. The benchmark process resulted

  in revisions to not seasonally adjusted data from April 2010 forward

  and to seasonally adjusted data from January 2007 forward. Some

  historical data predating the normal benchmark revision period also

  were revised due to the implementation of NAICS 2012 and other minor

  changes related to rounding and the recalculation of aggregate series.

  

  Table A presents revised total nonfarm employment data on a seasonally

  adjusted basis for January through December 2011. The revised data for

  April 2011 forward incorporate the effect of applying the rate of

  change measured by the sample to the new benchmark level, as well as

  updated net business birth/death model adjustments and new seasonal

  adjustment factors. The November and December 2011 data also reflect

  the routine incorporation of additional sample receipts into the

  November final and December second preliminary estimates. The total

  nonfarm employment level for March 2011 was revised upward by 165,000

  (162,000 on a not seasonally adjusted basis). The previously published

  level for December 2011 was revised upward by 266,000 (231,000 on a

  not seasonally adjusted basis).

  

  An article that discusses the benchmark and post-benchmark revisions,

  the change to NAICS 2012, and the other technical issues, as well as

  all revised historical Current Employment Statistics (CES) data, can

  be accessed through the CES homepage at www.bls.gov/ces/. Information

  on the revisions released today also may be obtained by calling (202)

  691-6555.

  

  

    Table A. Revisions in total nonfarm employment, January-December 2011,

    seasonally adjusted                                                    

                                                                           

    (Numbers in thousands)                                                         

    ___________________________________________________________________________________

                   |                                 |                           |

                   |              Level              |    Over-the-month change        |

                   |---------------------------------|---------------------------------|

     Year and month|    As    |          |           |    As    |          |           |

                   |previously|    As    | Difference|previously|    As    | Difference|

                   |published |  revised |           |published |  revised |           |

    _______________|__________|__________|___________|__________|__________|___________|

                   |          |          |           |          |          |           |

         2011      |          |          |           |          |          |           |

           |          |        |    |        |  |           |

    January........|  130,328 | 130,456  |   128     |    68    |   110    |    42     |

    February.......|  130,563 | 130,676  |   113     |   235    |   220    |   -15     |

    March..........|  130,757 | 130,922  |   165     |   194    |   246    |    52     |

    April..........|  130,974 | 131,173  |   199     |   217    |   251    |    34     |

    May............|  131,027 | 131,227  |   200     |    53    |    54    |     1     |

    June...........|  131,047 | 131,311  |   264     |    20    |    84    |    64     |

    July...........|  131,174 | 131,407  |   233     |   127    |    96    |   -31     |

    August.........|  131,278 | 131,492  |   214     |   104    |    85    |   -19     |

    September......|  131,488 | 131,694  |   206     |   210    |   202    |    -8     |

    October........|  131,600 | 131,806  |   206     |   112    |   112    |     0     |

    November.......|  131,700 | 131,963  |   263     |   100    |   157    |    57     |

    December (p)...|  131,900 | 132,166  |   266     |   200    |   203    |     3     |

    -----------------------------------------------------------------------------------

     p = preliminary.

     

  

        Adjustments to Population Estimates for the Household Survey

  

  Effective with data for January 2012, updated population estimates

  which reflect the results of Census 2010 have been used in the

  household survey. Population estimates for the household survey are

  developed by the U.S. Census Bureau. Each year, the Census Bureau

  updates the estimates to reflect new information and assumptions about

  the growth of the population during the decade. The change in

  population reflected in the new estimates results from the

  introduction of the Census 2010 count as the new population base, 

  adjustments for net international migration, updated vital statistics and

  other information, and some methodological changes in the estimation

  process. The vast majority of the population change, however, is due

  to the change in base population from Census 2000 to Census 2010.

  

  In accordance with usual practice, BLS will not revise the official

  household survey estimates for December 2011 and earlier months. To

  show the impact of the population adjustment, however, differences in

  selected December 2011 labor force series based on the old and new

  population estimates are shown in table B.

  

  The adjustment increased the estimated size of the civilian

  noninstitutional population in December by 1,510,000, the civilian

  labor force by 258,000, employment by 216,000, unemployment by 42,000,

  and persons not in the labor force by 1,252,000. Although the total

  unemployment rate was unaffected, the labor force participation rate

  and the employment-population ratio were each reduced by 0.3

  percentage point. This was because the population increase was

  primarily among persons 55 and older and, to a lesser degree, persons

  16 to 24 years of age. Both these age groups have lower levels of

  labor force participation than the general population.

  

  Data users are cautioned that these annual population adjustments

  affect the comparability of household data series over time. Table C

  shows the effect of the introduction of new population estimates on

  the comparison of selected labor force measures between December 2011 and

  January 2012. Additional information on the population adjustments and

  their effect on national labor force estimates is available at

  www.bls.gov/cps/cps12adj.pdf.

  

  

  Table B. Effect of the updated population controls on December 2011 estimates by sex, race, and

  Hispanic or Latino ethnicity, not seasonally adjusted                                    

                                                                              

  (Numbers in thousands)                                                      

                                                                              

  _____________________________________________________________________________________________________

                                              |      |     |      |       |        |       |           

                                              |      |     |      |       |  Black |       |           

                                              |      |     |      |       |    or  |       |  Hispanic 

                  Category                    |Total | Men | Women| White | African| Asian | or Latino 

                                              |      |     |      |       |American|       | ethnicity 

                                              |      |     |      |       |        |       |           

  ____________________________________________|______|_____|______|_______|________|_______|___________

        |    |  |  |  |  |  |

  Civilian noninstitutional population........| 1,510| -116| 1,626| -1,181|     407|  1,161|   1,330

    Civilian labor force......................|   258| -413|   671| -1,385|     166|    731|     781

      Participation rate......................|   -.3|  -.3|   -.2|    -.3|     -.3|    -.2|     -.3

     Employed.................................|   216| -368|   584| -1,266|     165|    676|     675

      Employment-population ratio.............|   -.3|  -.3|   -.2|    -.3|     -.2|    -.2|     -.3

     Unemployed...............................|    42|  -45|    87|   -119|       2|     55|     106

      Unemployment rate.......................|    .0|   .0|    .0|     .0|     -.1|     .1|      .1

    Not in labor force........................| 1,252|  297|   955|    205|     240|    430|     550

  ____________________________________________|______|_____|______|_______|________|_______|___________

                                                                              

   NOTE:  Detail may not sum to totals because of rounding. Estimates for the above race groups (white,

 black or African American, and Asian) do not sum to totals because data are not presented for all races.

 Persons whose ethnicity is identified as Hispanic or Latino may be of any race.           

  

  

  Table C. December 2011-January 2012 changes in selected labor force        

  measures, with adjustments for population control effects                   

                                                                              

  (Numbers in thousands)                                                      

                                                                              

  ____________________________________________________________________________

                                       |           |            |             

                                       |           |            |  Dec.-Jan.  

                                       | Dec.-Jan. |    2012    |   change,   

                                       |  change,  | population |  after re-  

                Category               |    as     |   control  |  moving the 

                                       | published |   effect   |  population 

                                       |           |            |   control   

                                       |           |            |  effect(1) 

  _____________________________________|___________|____________|_____________

                                       |           |            |             

  Civilian noninstitutional population.|  1,685    |      1,510 |     175

    Civilian labor force...............|    508    |        258 |     250

      Participation rate...............|    -.3    |        -.3 |      .0

     Employed..........................|    847    |        216 |     631

      Employment-population ratio......|     .0    |        -.3 |      .3

     Unemployed........................|   -339    |         42 |    -381

      Unemployment rate................|    -.2    |         .0 |     -.2

    Not in labor force.................|  1,177    |       1,252|     -75    

  _____________________________________|___________|____________|_____________

                                                                              

    (1) This Dec.-Jan. change is calculated by subtracting the population 

  control effect from the over-the-month change in the published seasonally

  adjusted estimates.

 

 

 

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