The economy created 148,000 jobs in January, 38.5% of these were in the Goods producing industries and 61.5% in Service providing sector. The total number of seasonally adjusted (SA), non-farm people employed in the U.S. in January was 147.810 million (M), an increase of 0.14% month on month, (m/m). Over the past 12 months the U.S. economy has added 2.269M jobs, or +1.6% for an average of 189,000 per month.
Of the 200,000 jobs created in January, 196,000 were in the Private sector and 4,000 originated in Government. The big volume gainers in the Private sector were Education and Health services, (+38,000) and Leisure and Hospitality (+35,000). Within Government, 10,000 jobs were initiated at the local level and 5,000 at the Federal level, while State governments reduced 11,000 jobs.
The SA service providing sector employed 127.452M people in January, up 143,000 jobs, 0.11% m/m and higher by 1.756M or 1.3% y/y. Service providing employment in January accounting for 86.2% of the non-farm workforce.
The SA goods producing sector employed 20.358M people in January, up 57,000, (+0.28%), m/m and up by 513,000 or 2.6% y/y. On a percentage basis, the goods producing sector is creating twice as many jobs as the service providing segment, a significant change.
Figure 1 shows manufacturing and construction employment on the same chart from 2005 to present. Both manufacturing and construction employment are showing growth, construction is growing at a faster rate on a percentage basis.
The SA manufacturing sector employed 12.555M in January, up 15,000 or 0.12%, m/m and higher by 200,000 (1.6%), y/y. The two largest employment categories within manufacturing are motor vehicles and parts and transportation equipment. There were 955,100 employed in the manufacture of motor vehicles and parts, no change m/m. On a y/y basis, jobs in this sector were higher by 8,000 or +0.90%. The transportation equipment field employed 1.645M. Jobs in this sector were up by 6,000, +0.35% m/m and were stronger by 20,000, +1.2% y/y.
The construction sector employed a total of 7.099M, up 36,000, (0.51%), m/m and up by 226,000, (3.3%), y/y. Most construction workers are employed constructing buildings. In January there were 1.566M workers constructing buildings, up 3,000, +0.18% m/m and up 44,000, +2.9% y/y. Heavy civil engineering was the next largest construction segment employing 993,400 in January, up 6,000, +0.64% m/m and higher by 25,000 or +2.5% y/y. Highway, streets and bridge construction, (not SA) employed 292,300, down 44,200, -13.1% m/m, but higher by 2,600 or +0.9% y/y. Industrial building construction, (not SA) employed 166,100, down 5,600, -3.3% m/m, but higher by 5,700, +3.6% y/y. Commercial building construction, (not SA) jobs declined by 5,800 m/m, -0.9% to 625,100 workers m/m. On a y/y basis commercial construction jobs increased by 45,100, a solid +7.8% gain.
At Gerdau, we keep a keen eye on the employment numbers, especially manufacturing and construction since this is where most long product steel ends-up. In addition we know that growth in net job creation correlates to increased steel consumption.