Community | February 03, 2012 | 51 comments

January jobs report: Hiring ramps up, unemployment falls - Feb. 3, 2012

source: http://money.cnn.com/2012/02/03/news/economy/jobs_report_unemployment/index.htm?hpt=hp_t1

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kennymotown
A very surprising increase!

NEW YORK (CNNMoney) -- American employers substantially stepped up their hiring in January, bringing the unemployment rate down for the fifth month in a row.
Employers added 243,000 jobs in January, the Labor Department reported Friday, marking a pick-up in hiring from December, when the economy added 203,000 jobs.

Meanwhile, the unemployment rate fell to 8.3%. That is the lowest since February 2009.
Hiring was much stronger than expected, and once it was apparent the job gains were broad based across several sectors, economists and investors called it a "nice surprise," "fantastic," and even "a touchdown!" Stock futures immediately headed higher.
Economists surveyed by CNNMoney had forecast 130,000 jobs added in the month, and that the unemployment rate likely ticked up to 8.6%.
"To show the economy adding this kind of jobs number in a January is amazing," said Kathy Kane, senior vice president of Talent Management at Adecco Group North America. "As we talk to clients, they're very optimistic about continuing to hold jobs throughout the year but also to increase jobs."
"This is an optimistic jobs report, especially in light of very poor jobs reports for almost three years," said Brian Hamilton, CEO of Sageworks, a financial information company. "We don't know if the positive jobs trend will continue, but it is definitely a good trend."
The encouraging news was coupled with revisions to the Labor Department's data, showing the economy added 180,000 more jobs than originally thought in 2011.

Private businesses have been adding jobs consistently since March 2010. In January, they added 257,000 jobs.
But the government has been bleeding jobs since the middle of 2010, and continued to do so last month. Most of the recent job losses have been at the state and local level. Overall, the public sector cut 14,000 jobs in January.
Check the unemployment rate in your state
The job market has a long way to go to fully recover from the financial crisis. The economy still needs to add about 5.6 million jobs to get back to 2008 employment levels.
And certain demographic groups still are burdened with ultra-high unemployment rates. While the black unemployment rate fell substantially from 15.8% to 13.6% in January, it still remained far above the unemployment rate for whites, which is 7.4%.
Latinos had a 10.5% unemployment rate.
Of the 12.8 million Americans who remain unemployed, 42.9% have been so for six months or more.
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51 comments // January jobs report: Hiring ramps up, unemployment falls - Feb. 3, 2012

  • Paratus
    • -2
      Paratus  

    • Yeah and home sales in 2011 were at an all time low, the number of people on food stamps has increased by 14 million since Obummers election, the teen unemployment rate is monstrous etc. But if we just drop 1.2 million from the "unemployed" rolls things will look much better and no wonder the rate dropped.
      Two years ago I said to the wife that in the beginning of 2012 the economic numbers would be polished off, massaged and squeegeed until Obummer looked good for his re-election bid.
      These numbers are such a joke. Anyone with half a brain can see through them.

    • 4 months ago
  • kennymotown
    • +1
      kennymotown  
    • Paratus:

      Your the JOKE, supporting the very people who have voted against every Job bill Obama has suggested, even saying were going to make Obama a one term President. Hell your not a Joke your a traitor!!!!!!!

    • 4 months ago
  • ZiggyStrange
    • 0
      ZiggyStrange  
    • Paratus:

      Source: http://www.washingtonpost.com Washington Post website: The "not in labor force" did NOT increase by 1,177,000 last month. RATHER, the numbers changed due to the BLS making modifications in its January 2012 numbers based on the 2010 census (the December 2011 numbers were still being made on prior population estimates). Based on the 2010 population controls, the "not in labor force" appeared to have increased by 1.2 million in January 2012 over December 2011, and the working age population appeared to have jumped 1.7 million. However, that is NOT what happened last month - actually the BLS numbers changed because of the BLS using the new population estimate. While the reported number suggests there are about 1.2 million more people out of the labor force than was originally thought, this is only because the working age population is larger than previously estimated.

      As the BLS further indicated in its report, when you look at the January 2012 numbers compared to the December 2011, without accounting for the population change (in other words, when doing an apples-to-apples comparison), the "not in labor force" level actually DECLINED in January 2012 from December 2011.

      Here is another

      No Rick Santelli and Zero Hedge, One Million People Did Not Drop Out of the Labor Force Last Month

      By Barry Ritholtz - February 3rd, 2012, 4:15PM

      http://www.ritholtz.com/blog/2012/02/no-rick-santelli-and-zero-hedge-one-million...

      So today following an otherwise pretty darn good jobs report, we get the usual perma-pessimists at Zero Hedge and Rick Santelli over at CNBC proclaiming that the report showed a drop of over 1 million people from the labor force in one month. Of course, as ususal, both Santelli and Zero Hedge have a real reading comprehension problem and completely missed that this million+ people isn’t some new January phenomenon, but a result of the BLS using the 2010 census data to have more accurate data. In other words, the changes in the Household Survey to the various measures had taken place over the years prior to 2010, but for simplicity’s sake, the BLS incorporates these changes into one month (which they clearly point out). The relevant text from the report is below (bold is mine):

      “Effective with data for January 2012, updated population estimates which reflect the results of Census2010 have been used in the household survey. Population estimates for the household survey are developed by the U.S. Census Bureau. Each year, the Census Bureau updates the estimates to reflect new information and assumptions about the growth of the population during the decade. The change in population reflected in the new estimates results from the introduction of the Census 2010 count as the new population base, adjustments for net international migration, updated vital statistics and other information, and some methodological changes in the estimation process. The vast majority of the population change, however, is due to the change in base population from Census 2000 to Census 2010.

      In accordance with usual practice, BLS will not revise the official household survey estimates for December 2011 and earlier months. To show the impact of the population adjustment, however, differences in selected December 2011 labor force series based on the old and new population estimates are shown in table B.

      The adjustment increased the estimated size of the civilian noninstitutional population in December by 1,510,000, the civilian labor force by 258,000, employment by 216,000, unemployment by 42,000, and persons not in the labor force by 1,252,000. Although the total unemployment rate was unaffected, the labor force participation rate and the employment-population ratio were each reduced by 0.3 percentage point. This was because the population increase was primarily among persons 55 and older and, to a lesser degree, persons 16 to 24 years of age. Both these age groups have lower levels of labor force participation than the general population.”

      So Rick/Zero Hedge, unless you would like to argue that the population of the United States also grew by 1.5 million in one month (since that is from the exact same report/revision you quoted), I think both of you should retract your extremely misleading statements about those not in the labor force increasing by over a million in January and simply admit that you are either too stupid or too focused on selling a particular world view to read the data correctly.

    • 4 months ago
  • Paratus
    • 0
      Paratus  
    • kennymotown:

      Interesting. I posit facts which are not in dispute and I'm a traitor. The House has sent over 20 bills to the Senate, bill that would aid int he creation of jobs. Reid won't even bring them to the floor for a vote. Obummer tells the House that their stuff will get vetoed. Don't give me that lie about Obama and his supposed job bills. His idea of stimulus is to prop up bankers, engage in corporate welfare with bankrupt energy companies, foist job killing Obamacare on us, build a "green" car that doesn't sell and have a racist, lying, criminal and murderous Justice Department. I'm the traitor! We NEED to make Barry Soetoro a one term president. Isn't this what villainous libs tried to do with Bush and his second term or are you suggesting that those who did not support him were kidding! Are you not trying to regain the House and increase Senate seats. That's what elections do Kenny or are you sprinkling pixie dust over your head.
      If wanting a central government that adheres to its duties as stated in the Consititution, believes in the primacy of the individual over the state with accompanying individual freedom, fiscal responsibility, believes in the Bill of Rights makes me a traitor. I can only surmise, from your shrill response, that you oppose my position and hence, the things I have just listed. I believe that these things do not make me a traitor but you might want to take a closer look at yourself. I'm not accusing you of being a traitor, nor a joke. I try not to stoop to the lowest levels that liberals inhabit but I must admit, after posting here for a while some negatives are rubbing off. In any event, I have always enjoyed the repartee with you, until now. Your lunatic response has left me cold. Rational conversations here are infrequent and now even you have left that arena. Mores the pity.
      Kenny, I really can't understand how people who call themselves liberals can be so hateful, so intolerant, so insulting to people who have different opinions. After reading many posts here by self styled libs my patience is wearing thin. Used to be I would engage them in conversation face to face. Now, it is plain that they are a group dedicated to destroying this country and our freedoms. As disappointing as this is, it confirms my reason for the training that I do. Your replies to me in the past have been wrong about many things. You are wrong again. Getting to be a habit isn't it.
      I'm not going to bore you with the proper response to your statements or obvious observations that it is easy to insult people with the anonymity of the internet. I just hope you now feel better.

    • 4 months ago
  • kennymotown
  • ithink
    • +1
      ithink  

    • You can interpret the report any way you want but a positive report gives even the longest unemployed hope that it,s getting better and their situation will improve.So lets get busy and help if we can those unemployed or at least encourage them to keep trying.They certainly do not need a whole lot of doom and gloom thown at them now.

    • 4 months ago
  • JanforGore
    • +1
      JanforGore  

    • Well as with all other government reports on this I would suspect flipping burgers is still considered a "manufacturing " job as it was categorized under Bush's Dept. of Labor. And of course they carry numbers over from last year and they don't include homeless people,-you know poor people living under bridges, people living in poverty, veterans returning who still are out of work, high school graduates who can't afford college or find a job who are in limbo, the disabled, people who have given up entirely, etc. And I would suspect the jobs are mostly in fast food, retail working a cash register to keep the 1% happy and jobs like fracking companies (erroneously categorized as a "clean energy job") especially now that it is going to be wholeheartedly embraced by this administration as well. And from experience I know there are more "part-time" positions advertised that also don't provide benefits, insurance, profit sharing plans, etc.

      General comment:

      However, on this site you can't have an honest view of the world anymore. It has to be skewed for political purposes or you aren't in the "club" here when talking about matters of importance to this country as a whole. Otherwise you are labelled obsessive compulsive, a hater and basically made to feel intimidated to the point that you don't even wish to respond to such important topics. However, I had to respond because I have been unemployed for six months now and I KNOW what it is like out here where I am. I also know that people out of work for a very long time take whatever they can get because as they are told, "It's a job." It may not be a life, but it's a job. They take jobs in JC Penney standing up behind a cash register for hours and they hate it. They take jobs cleaning bathrooms and they hate it. They are forced after going to college and working good jobs all of their lives into taking something that pays minimum wage with no benefits because their unemployment ran out and hey, "it's a job." But don't dare to relay some of the human feelings and experiences behind the fact that many times taking a job requires settling when you shouldn't have to or sacrificing so much else of yourself just to take a job where what you bring home still leaves you broke after paying everyone else with just enough to buy some food to get by. And by all means don't relay the smoke and mirrors tactics employed by government agencies regardless of the president to make themselves look good. Just play the game.

      Now, I'm also sure some of those jobs may well have been upper tier but I would say the majority were not and we should be able to do better. I also would like to know how many of them were real clean energy jobs because I definitely don't see that in the ghost town I live in. Oh, but I did see two "great" jobs locally here... One in a Blockbuster video store and one where I have to be "bilingual" in order to get it. Should I even have to learn another entire language in order to get a job to survive?

      I'm really sorry if my dose of reality upsets the local Obama police on this site (not all who support him but some) as well who jump on people at the drop of a hat here and who do nothing but assume the motivations of others because like those who follow Republicans, it is all about the MAN above all else. I had enough of that on other sites where RW a^^e^ did the same thing to me for years. It's disappointing actually to see it here as well. I personally don't give two farts who the president is now, the job market has a LONG way to go to get to a point where what I see on this front will be considered truly good news because I am living it.

      I am therefore, not obsessive compulsive, a hater, a one topic poster (as if that is supposed to mean you can't comment about anything else) or some other assorted dig. It appears this "election" has taken over this enitre site and the compulsion to pump up Obama at any cost for some takes the place of real discussion. Well, for some of us who don't place a man over reality and don't give two s**8s about Republican a**ez* to the point where we can't even begin to talk about them, it's getting redundant and boring. But it is so wonderful to know that those ragging on others here for all of their tolerance of other opinions really do have it so great. I suppose that means you won't now be needing to get in the streets for the "American Spring " after all... I mean we have jobs now! Hail the 1%!

    • 4 months ago
  • Milieu
  • kennymotown
  • SFirman
    • +1
      SFirman  

    • It is good to hear employers have added jobs in January. Their are 243,000 people happy to have these jobs. I know we have a long way to go but this is better then expected. I know Fox, Republicans, Obama haters will play this down but the Americans that have these jobs will now draw a paycheck..

    • 4 months ago
  • letsliveinpeace
  • SFirman
  • bike10
  • EmperorThan
    • +1
      EmperorThan  
    • bike10:

      Fox News is probably going to attribute the uptick in the economy to successful Republican party candidates running for President 'encouraging Americans to work harder'.

    • 4 months ago
  • northernexpat
    • +2
      northernexpat  

    • All those corporations sitting on their money and not hiring because they want to make sure the GOP win can only hold out for so long. No matter what type of jobs they are, they still stimulate the economy. I just hope that corporation don't decide to do massive layoffs in say September/October to increase unemployment just before the election. Keep your fingers crossed.

    • 4 months ago
  • OlBlue
  • HarukoHaruhara
  • OlBlue
  • tverdell
    • +1
      tverdell  

    • I wonder if the economy is peaking too soon, assuming this is not a REAL recovery.

      This would be better for the Dems if it were to happen in June.

    • 4 months ago
  • HarukoHaruhara
  • MSII
    • +4
      MSII  

    • There is a very basic flaw in the economic system very few will talk about, the basic systemic fact that there are more and more people (population continues to rise world wide) for fewer and fewer jobs (as technology continues to become more powerful and cheaper). Also the basic fact that you can't have infinite growth in a finite system (the world is finite, and people have finite capacities) Basic systemic changes to the definition and nature of work must follow.

    • 4 months ago
  • rerushg
    • 0
      rerushg  

    • Well I'm certainly hopeful. :) Good post, kenny. Upbeat never hurts!

      I've been convinced for some time that major corporate and financial interests in cahoots with the GOP have acted to suppress the economy. Note that despite a depressed economy these guys continue to show great profits by having stripped down to minimum human resources. Problem is, they can only do that for so long.
      The more the GOP dump in their messkits and Obama seems likely to prevail, the more these guys will accept the inevitable and get back to business. Maybe the one good thing about corporations is that they are predictable; they'll push an ideology hard but they won't fall on their swords for it.

    • 4 months ago
  • kennymotown
  • FreeSpiritMuse
  • kennymotown
  • kennymotown
  • Mitekillem1
  • circlesquared
  • circlesquared
    • +4
      circlesquared  

    • I find this hard to believe. Florida is a dead zone for employment...even the tourism industry is shrinking fast although inland Disney is still doing great.

    • 4 months ago
  • Truthitswhatsfordinner
  • kennymotown
  • circlesquared
  • GENERALNATTY
    • +2
      GENERALNATTY  
    • Truthitswhatsfordinner:

      You gotta admit though its a brilliant ploy because so much of market investment is based on emotion, so if you instill confidence in people who have the ability to invest the more likely they are to do so.

      Fake it till you make it type of thing.

    • 4 months ago
  • kennymotown
  • Truthitswhatsfordinner
  • Truthitswhatsfordinner
  • OlBlue
    • 0
      OlBlue  
    • GENERALNATTY:

      True true. Can you imagine the emotion Boehner, Romney, Cantor, and McConnell are feeling this morning? Many tears, sputters, stamping of feet, and sad turtle talk out of these stooges.

    • 4 months ago
  • JanforGore
    • +5
      JanforGore  

    • Really? For what? McDonalds? Fracking companies? There are no jobs where I live and I am not exaggerating. I really begin to wonder what "kind" of jobs are being "created" to pump up these reports regardless of the party in power.

    • 4 months ago
  • kennymotown
  • JanforGore
  • kennymotown
    • +1
      kennymotown  
    • JanforGore:

      I can understand that as well, we have got to raise the tax rates immediately on the top 5% and create real jobs. Especially environment impact jobs with the coming climate calamity, what was it 10 billion dollars in 10 events last year because of climate change.

    • 4 months ago
  • kennymotown
  • ZiggyStrange
  • kennymotown
    • +1
      kennymotown  
    • ZiggyStrange:

      Thanks, I was totally shocked the numbers were supposed to be 140,000. Believe it or not January is the worst month for grocery stores year in and out. New years resolutions and dieting and less funds after XMAS!

    • 4 months ago
  • JanforGore
  • ZiggyStrange
    • 0
      ZiggyStrange  
    • JanforGore:

      I have never called you a hater Jan. I disagreed with you 1 time last year and I realized there is no way to disagree with you and not get you upset.

      Lighten up, I am not your enemy, I support Green, and always have. I support Obama, and there are many Obama haters here. Can't you understand that?

    • 4 months ago
  • JanforGore
    • +1
      JanforGore  
    • ZiggyStrange:

      Which ones are in this thread? And I'm not upset, I am stating an observation since you stated that in this thread where there is also not one derogatory response in this thread specifically aimed at Obama.

    • 4 months ago
  • joeredford
  • ZiggyStrange
  • ZiggyStrange
    • 0
      ZiggyStrange  
    • joeredford:

      Hi Joe. I was hoping my comment being all the way at the bottom would not be noticed by Jan. She may well have ODS but there are so many trolls and shills here I try to concentrate on the nasties. I have had long rants with Political Amazon, it's not a gender thing. I tend to see Jan more as a one issue person but hey! What can I say? I have a tendency to respond when confronted.

    • 4 months ago
  • ZiggyStrange
    • +1
      ZiggyStrange  
    • JanforGore:

      1. I did not say there were haters on this thread, that is what you erroneously assumed was aimed at you. I'm tired of people having knee jerk reactions and not reading what you type but what they want to see in it. Your "observation" was very poor in substance, and defensive in nature. Basically you self identified as an Obama hater

      2. It's not my problem if you jump to conclusions. The other thread I said the same type of thing on had no anti Obama statements. The point being that to tell someone "don't let the haters put a damper on it" does not mean someone already has. You know better.

      3. I no longer want to argue with you trying to spare your feelings, and I will from now on respond in kind to you,

      While we are asking questions are you an Obama hater? Also editing is for typos, not continuation of rationalization.

    • 4 months ago
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