by Lucia Mutikani
WASHINGTON (Reuters) – Job creation slowed more than expected in January in the United States, but rising wages and unemployment to the lowest in eight years seem to reflect a persistently strong labor market.
the non-farm job creation fell to 151,000 last month and the unemployment rate is down to 4.9%, the lowest since February 2008, show statistics released Friday by the Labor department.
economists polled by Reuters had on average expected 190,000 job creation and a stable unemployment rate to 5%.
the data for November and December were revised and show that the US economy created over the two months 2,000 jobs less than previously.
Along with job creation below expectations in January, the hours worked by employees increased and wages have rebounded.
“markets can see a sign that it is too early to definitively rule out a rate hike in March by the Federal Reserve, “responded Mohamed El-Erian, chief economist at Allianz.
Such is the interpretation which market participants have given these employment figures because, after publication, the dollar strengthened against a basket of reference currencies, the price of US government bonds fell and the New York Stock Exchange opened down.
PARTICIPATION iN LABOUR MARKET REMAINS WEAK
the US Federal Reserve has raised interest rates in December for the first time in nearly 10 years. She then committed to continue its monetary tightening gradually.
The turmoil in the financial markets during the month of January, however, had led investors to lose faith in any rate hike 2016 in the United States.
the slowdown in job creation in January is the backlash of the force hiring in the fourth quarter, in which the unusually mild temperatures have boosted employment in climate-sensitive sectors such as construction.
Similarly, the holiday season in November and December fed seasonal hiring delivery drivers with peak annual trade activity online.
the detailed reading of the report of the Ministry of Labour could also alleviate concerns about the extent of the slowdown in the US economy, which grew by only 0.7% annualized in the fourth quarter of 2015.
the average hourly wage increased by 12 cents, or 0.5% last month, while it remained stable in December. In one year, the increase was 2.5%.
The unemployment rate is at a level usually associated with full employment, wage growth should accelerate further this year. This could encourage the return to the labor market, where the participation rate, or the share of Americans of working age actually occupying or seeking employment, has never been so low for almost 40 years, to 62, 7%.
in January, the full job creation was driven by the private sector, mainly in services that have created 118,000. The public sector has destroyed 7,000 jobs.
Despite the stronger dollar and weak global demand, the manufacturing sector has created 29,000 jobs last month, the highest figure recorded since August 2013.
(with Jennifer Ablan in New York; Bertrand Boucey for the French service, edited by Marc Angrand)
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