U.S. adds 130,000 jobs in January as unemployment falls to 4.3%

Non-farm payrolls rose by 130,000 in January and the unemployment rate fell to 4.3 percent, following a downward revision to December payrolls.

U.S. non-farm payrolls increased by 130,000 in January and the unemployment rate fell to 4.3 percent from 4.4 percent in December. The January release followed a downward revision to December payrolls. The Bureau of Labor Statistics updated its birth-and-death model effective with this report. The employment report was delayed by a three-day federal government shutdown. Key details: - Non-farm payrolls rose by 130,000 in January, versus a Reuters economist consensus of about 70,000. - The unemployment rate declined to 4.3 percent from 4.4 percent in December, based on the household survey. - The BLS updated its birth-and-death model; economists estimate this change could reduce reported monthly payroll gains by as many as about 50,000 jobs. - Seasonal patterns, including fewer holiday hires last year, likely led to fewer January layoffs and boosted payroll gains. - The report was delayed due to a three-day federal government shutdown. Summary: The data point to modest strengthening in hiring while the unemployment rate edged down. Policymakers at the Federal Reserve may view the report as part of a broader set of labour and inflation signals as they consider interest-rate policy. The BLS will introduce new annual population controls with February's report, which could affect household-survey measures.