THE EMPLOYMENT SITUATION -- JANUARY 2023
Total nonfarm payroll employment rose by 517,000 in January, and the unemployment ratechanged little at 3.4 percent, the U.S. Bureau of Labor Statistics reported today. Jobgrowth was widespread, led by gains in leisure and hospitality, professional and business services, and health care. Employment also increased in government, partiallyreflecting the return of workers from a strike.
This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. Theestablishment survey measures nonfarm employment, hours, and earnings by industry. For more information about the concepts and statistical methodology used in these two surveys,see the Technical Note.
Changes to The Employment Situation Data
Establishment survey data have been revised as a result of the annual benchmarking || process, the NAICS 2022 conversion, and the updating of seasonal adjustment factors. || Also, household survey data for January 2023 reflect updated population estimates. || See the notes at the end of this news release for more information.
Household Survey Data
Both the unemployment rate, at 3.4 percent, and the number of unemployed persons, at 5.7 million, changed little in January. The unemployment rate has shown little net movement since early 2022. (See table A-1. See the note at the end of this news release and tablesB and C for more information about annual population adjustments to the household surveyestimates.)
Among the major worker groups, the unemployment rates for adult men (3.2 percent), adultwomen (3.1 percent), teenagers (10.3 percent), Whites (3.1 percent), Blacks (5.4 percent),Asians (2.8 percent), and Hispanics (4.5 percent) showed little change in January
The number of persons jobless less than 5 weeks decreased to 1.9 million in January. Thenumber of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 1.1 million. The long-term unemployed accounted for 19.4 percent of the totalunemployed in January.
In January, both the labor force participation rate, at 62.4 percent, and the employment-population ratio, at 60.2 percent, were unchanged after removing the effects of the annualadjustments to the population controls. These measures have shown little net change sinceearly 2022 and remain below their pre-pandemic February 2020 levels (63.3 percent and 61.1percent, respectively).
The number of persons employed part time for economic reasons, at 4.1 million, was littlechanged in January. These individuals, who would have preferred full-time employment, wereworking part time because their hours had been reduced or they were unable to find full-time jobs.
The number of persons not in the labor force who currently want a job was 5.3 million inJanuary, little changed from the prior month. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks precedingthe survey or were unavailable to take a job.
Among those not in the labor force who wanted a job, the number of persons marginally attached to the labor force, at 1.4 million, changed little in January. These individualswanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, was also little changed over the month at 342,000.
Establishment Survey Data
Total nonfarm payroll employment rose by 517,000 in January, compared with an average monthly gain of 401,000 in 2022. Job growth was widespread in January, led by gains in leisure and hospitality, professional and business services, and health care. Employmentalso increased in government, partially reflecting the return of workers from a strike.
Leisure and hospitality added 128,000 jobs in January compared with an average of 89,000jobs per month in 2022. Over the month, food services and drinking places added 99,000jobs, while employment continued to trend up in accommodation (+15,000). Employment inleisure and hospitality remains below its pre-pandemic February 2020 level by 495,000,or 2.9 percent.
In January, employment in professional and business services rose by 82,000, led by gainsin professional, scientific, and technical services (+41,000). Job growth in professionaland business services averaged 63,000 per month in 2022.
Government employment increased by 74,000 in January. Employment in state governmenteducation increased by 35,000, reflecting the return of university workers after a strike.
Health care added 58,000 jobs in January. Job growth occurred in ambulatory health care services (+30,000), nursing and residential care facilities (+17,000), and hospitals (+11,000). In 2022, health care added an average of 47,000 jobs per month.
Employment in retail trade rose by 30,000 in January, following little net growth in 2022 (an average of +7,000 per month). In January, job gains in general merchandise retailers (+16,000) and in furniture, home furnishings, electronics, and appliance retailers (+7,000) were partially offset by a decline in health and personal care retailers (-6,000).
Construction added 25,000 jobs in January, reflecting an employment gain in specialtytrade contractors (+22,000). Employment in the construction industry grew by an averageof 22,000 per month in 2022.
In January, transportation and warehousing added 23,000 jobs, the same as the industry'saverage monthly gain in 2022. Over the month, employment in support activities fortransportation increased by 7,000..
Employment in social assistance increased by 21,000 in January, little different fromthe 2022 average gain of 19,000 per month.
Manufacturing employment continued to trend up in January (+19,000). In 2022, manufacturing added an average of 33,000 jobs per month.
Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; wholesale trade; information; financial activities; and other services.
In January, average hourly earnings for all employees on private nonfarm payrolls roseby 10 cents, or 0.3 percent, to $33.03. Over the past 12 months, average hourlyearnings have increased by 4.4 percent. In January, average hourly earnings of private-sector production and nonsupervisory employees rose by 7 cents, or 0.2 percent, to $28.26.
The average workweek for all employees on private nonfarm payrolls rose by 0.3 hour to34.7 hours in January. In manufacturing, the average workweek increased by 0.4 hour to40.5 hours, and overtime increased by 0.1 hour to 3.1 hours. The average workweek forproduction and nonsupervisory employees on private nonfarm payrolls increased by 0.2hour to 34.1 hours.
The change in total nonfarm payroll employment for November was revised up by 34,000,from +256,000 to +290,000, and the change for December was revised up by 37,000, from+223,000 to +260,000. With these revisions, employment gains in November and Decembercombined were 71,000 higher than previously reported. (Monthly revisions result fromadditional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors. The annual benchmark process also contributed to the November and December revisions.)
The Employment Situation for February is scheduled to be released onFriday, March 10, 2023, at 8:30 a.m. (ET).
Revisions to Establishment Survey Data
In accordance with annual practice, the establishment survey data released today have been benchmarked to reflect comprehensive counts of payroll jobs for March 2022. Thesecounts are derived principally from the Quarterly Census of Employment and Wages (QCEW),which counts jobs covered by the Unemployment Insurance (UI) tax system. In addition,the basis for industry classification in the establishment survey has been revisedfrom the 2017 North American Industry Classification System (NAICS) to NAICS 2022. Approximately 10 percent of employment was reclassified into different industries asa result of the NAICS revision. Implementation of NAICS 2022 resulted in major revisions reflecting content and coding changes in the retail trade and informationsectors, as well as minor revisions within the mining and logging, manufacturing, wholesale trade, financial activities, and other services sectors. Many industry titles and descriptions were also updated to better reflect official NAICS titles.
Revisions due to both the NAICS 2022 conversion and the benchmark process affected more historical data than typical in the annual benchmark process. The NAICS revisions are reflected for the entire history of affected industries for both seasonally and not seasonally adjusted data. Details of the updated titles and new,discontinued, and collapsed industries (and resulting changes to tables B-1 throughB-9) are available at www.bls.gov/web/empsit/cesnewseries.htm.
The total nonfarm employment level for March 2022 was revised upward by 568,000 (+506,000 on a not seasonally adjusted basis, or +0.3 percent). The average not seasonally adjusted benchmark revision (in absolute terms) over the past 10 years is0.1 percent.
The over-the-year change in total nonfarm employment for March 2022 was revised from+6,425,000 to +7,096,000 (seasonally adjusted). Table A presents revised total nonfarm employment data on a seasonally adjusted basis from January to December 2022.
All revised historical establishment survey data are available on the BLS website atwww.bls.gov/ces/data/home.htm. In addition, an article that discusses the benchmarkand post-benchmark revisions and other technical issues is available at www.bls.gov/web/empsit/cesbmart.htm.
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