NEW YORK (MainStreet) — The U.S. economy added 243,000 jobs in January, beating expectations by about 100,000 jobs, and pushing the unemployment rate down 0.2 percentage points to 8.3%. Even beyond these baseline improvements, there are plenty of reasons to be happy with the latest jobs report.
Employment-to-Population Rate Rises
While the unemployment rate is the standard measurement people look to when assessing the strength of the labor market, it doesn’t take into account those who are perfectly able and willing to work but have given up looking for jobs. For that, the best number to turn to is the employment-to-population ratio, which takes into account all working-age adults. The percentage of the population that was employed stood at 58.5%, an increase of 0.1% from the same month in 2011. That may not seem like much of an improvement, but during that time, the population has increased by roughly 3.5 million, which means more than that many jobs have been created to keep the employment rate steady.
Another way to view the health of the labor market is to consider the underemployment rate, which takes into account not only those who are unemployed but those who are only partly employed for economic reasons. That number stood at 15.1% in January, which is certainly still high, but a full percentage point less than what it was the same time one year before.
Construction and Manufacturing Booms
Construction and manufacturing were two of the hardest-hit industries in the recession, but the most recent jobs numbers suggest they are on the mend. The construction industry added 21,000 jobs in January after having added 31,000 the month before. Manufacturing had an even more striking increase, adding 50,000 positions in January.
More Jobs Added in Previous Months