Announced this morning, the economy added only 49,000 jobs in January, less than expected and only a slight improvement from last month’s negative result. The Leisure and Hospitality industry was weak, losing 61,000 jobs in the month which follows a revised 536,000 jobs lost the previous month. Government jobs showed a bit of strength as some education workers returned with lightened restrictions. The Unemployment Rate fell four-tenths to 6.3%, when it was expected to hold steady, as some people left the labor force. Average Hourly Earnings increased 0.2% in January and 5.4% on an annual basis. Average Weekly Hours held increased to 35.0 in January. Overall a weak headline jobs number coupled with a lower unemployment rate as some stopped looking for work. The dynamics of the report highlight the strain on the Leisure and Hospitality industry and the need for additional activity in the economy, as vaccine distribution and stimulus efforts are progressing. In all, bond yields ticked lower following the release of this morning’s data and equity futures are higher heading into the market open.
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