With unemployed Americans numbering in the 10 million range, the numbers in January’s jobs report isn’t exactly encouraging as actual growth fell short of predictions.
Although job creation last month increased compared to December, it wasn’t by much. Economists expected to hit 178,000 jobs in January, though only 113,000 jobs were created. Unemployment hit its peak in 2009 at 10%, but currently sits at 6.6%, the lowest in five years. But the reason why this isn’t so promising: people have stopped looking for work and baby boomers are retiring. A little more than 60% of Americans participated in the labor market- meaning they either had a job or searched for one. The current participation rate of 63% is near 1978′s all time low.
So what sectors have seen job growth? Blue collar sectors, including the goods-producing industries and construction firms added more jobs than the services sector for the first time since 2005. Manufacturers added 21,000 jobs and the mining industry added 7,200 jobs. Despite that beam of hope, the health care industry cut 400 jobs for the first time in since 2003.
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