Statement of Kathleen P. Utgoff - Commissioner - Bureau of Labor Statistics
Friday, February 4, 2005
Nonfarm payroll employment increased by 146,000 in January, and the unemployment rate decreased to 5.2 percent. Since its most recent low point in May 2003, payroll employment has increased by 2.7 million and is now just above the employment peak reached in February 2001. (Data from the survey of business establishments have been revised as a result of the annual benchmarking process and the updating of seasonal adjustment factors.) In January, employment rose in several service-providing industries, while manufacturing continued to lose jobs, as it has since September.
Over the month, employment growth continued in education and health services. This sector added 35,000 jobs in January and has grown by 424,000 over the year; gains were widespread among the component industries.
Financial activities employment increased by 21,000 in January. The credit intermediation industry and the securities, commodities, and investments industry contributed to the gain.
Transportation and warehousing added 34,000 jobs over the month and has seen its employment increase by 166,000 since July 2003. About half of January's gain occurred in courier and messenger services. The increase in that industry more than offset a decline in December.
Employment continued to trend up over the month in professional and business services and in leisure and hospitality. Retail trade employment edged up in January and has increased by 200,000 since June 2003. Wholesale trade employment was flat over the month. Since its recent low in August 2003, however, the industry has added 99,000 jobs; about half of that gain occurred in its electronic markets and agents and brokers component.
In contrast to the widespread job growth in the service sector, manufacturing employment fell by 25,000 in January. After reaching an employment trough in February 2004, manufacturers added 85,000 jobs through August. The trend has since turned downward, and 61,000 jobs have been lost. January's job loss in part reflected more extensive seasonal shutdowns than usual for the month in motor vehicles and parts.
Construction employment was little changed in January, after seasonal adjustment. Adverse weather may have held down employment in the industry during the month. Since its recent low in March 2003, construction has added 407,000 jobs.
