The U.S. economy added 157,000 new jobs in January, according to preliminary data from the U.S. Department of Labor, and the official unemployment rate rose to 7.9%. It was 7.8% in December of 2012.
Several private sector employment reports were more encouraging than the official government data. For example, the monthly report from the payroll services firm ADP said 192,000 new jobs were created in January.
Following this week’s Department of Commerce report of a contracting economy in the fourth quarter of 2012, the mediocre jobs data might intensify fears that the U.S. economy is headed toward a recession. However, there are several signs the quarterly dip in the gross domestic product will not last long. The government revised upward the number of jobs created in 2012 (to an average of 181,000 jobs per month), a booming stock market has the Dow Jones Industrial Average over the 14,000 mark, and the housing market continues to surge back.
While 157,000 new jobs were created last month, economists say the U.S. economy must create at least 150,000 new jobs each month just to keep up with changes in population and the labor market, and it must create at least 250,000 new jobs each month to quickly bring down the unemployment rate.
The higher unemployment rate is an indication that more unemployed people have re-entered the workforce and are looking for work.
