The United States (U.S.) Bureau of Labor Statistics reported today the country’s economy added 243,000 new jobs in January 2012, the most in nine months. Additionally, unemployment first-time-claims lowered by 0.2% to 8.3%. Both results proved better than economists had projected at 150,000 additional jobs and unemployment remaining at 8.5%.
The total number of employed persons increased to 141.6 million, 847,000 greater than December. According to the Bureau, hiring had been widespread within various high-paying industries. Moreover, the service sector was responsible for the majority of the jobs generated (162,000 jobs) especially within the food and beverage as well as retail industries. Other jobs were created in manufacturing, health care, mining, and warehousing industries. Yet, government lowered their number of jobs by 14,000.
The hourly work week did not change from 34.5 hours for the month of January but wages increased by 0.2% or $0.04 an hour to $19.62. Furthermore, the past 12 month hourly wage average increased by 1.9%.
Unemployed persons lowered to 12.8 million the first time since 2009. The unemployment rate that includes discouraged workers decreased to 15.1% despite that the level of discouraged workers went higher by 7.0%. Furthermore, long-term unemployment (27 weeks or more) remains troublesome at 5.5 million (42.9% of unemployed persons), although the unemployment duration fell from the near record 40.8 week length down to 40.1 weeks.
Job growth is crucial to economic recovery and the economic rate is showing some improvement. In addition to January’s positive news, December 2011 non-farm payrolls were revised upwards to a 203,000 increase for the month.
The EURUSD dropped 100 pips after the NFP report as the U.S. Dollar strengthened on the news. We expected the EURUSD to fall further if positive economic reports continue to emerge from the U.S. while Europe lags behind in economic progress from the recover. If the EURUSD closes below 1.3100, the next level of support seen at 1.3000.
Eugene Ross, Analyst
Admiral Markets
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