Highlights
The January jobs report posted stronger than expected with payroll gains and unemployment dip. Payroll jobs in January advanced 243,000 after jumping 203,000 in December (originally 200,000) and rising 157,000 in November (prior estimate up 100,000). The net revisions for November and December were up 60,000. Analysts projected a 135,000 boost for January. Today's report includes annual revisions to payroll series, including benchmark revisions to payroll levels and new seasonal factors. Household data received annual revisions last month but reflect updated population estimates in January data.

As for some time, private payrolls outstripped the total, increasing 257,000 in January, following a gain of 220,000 in December. Expectations were for a 150,000 rise in private payrolls. Private-sector employment was led by gains in professional and business services (+70,000), leisure and hospitality (+44,000), and manufacturing.

In the private sector, goods-producing jobs advanced 81,000 after a 71,000 boost in December. Manufacturing jobs increased 50,000 in January after rising 32,000 the month before. Construction employment gained 21,000 after increasing 31,000 in December. Mining increased 10,000, following an 8,000 advance the prior month. Private service-providing jobs jumped 176,000 in January, following a 149,000 expansion in December.

The public sector continued to shrink as government employment slipped 14,000, following a 7,000 decline in December.

Average hourly earnings rose 0.2 percent in January, following a 0.1 percent increase the prior month. The consensus called for a 0.2 percent gain. The average workweek for all workers in January held steady at 34.5 hours. Analysts projected 34.4 hours.

From the household survey, the unemployment rate dropped to 8.3 percent from 8.5 percent in December. The market median forecast was for an 8.5 percent unemployment rate.

On the news, Treasury rates rose and equity futures gained. Today's report is favorable toward improvement in personal income and industrial production. Despite worries about adverse seasonal adjustment issues, the January employment report indicates that the recovery is gaining momentum.

Market Consensus before announcement
Nonfarm payroll employment in December jumped a relatively healthy 200,000 after rising a revised 100,000 in November and increased a revised 112,000 in October. Private payrolls again outstripped the total, gaining 212,000 in December, following increases of 120,000 in November and 134,000 in October. Average hourly earnings strengthened in December, rising 0.2 percent after no change in November. The average workweek for all workers in December posted at 34.4 hours, compared to 34.3 hours in November. From the household survey, the unemployment rate unexpectedly continued to decline, slipping to 8.5 percent after dropping to 8.7 percent in November from 8.9 percent in October.

With the release of January 2012 data on February 3, 2012, the establishment survey will introduce revisions to nonfarm payroll employment, hours, and earnings data to reflect the annual benchmark adjustment for March 2011 and updated seasonal adjustment factors. Not seasonally adjusted data beginning with April 2010 and seasonally adjusted data beginning with January 2007 are subject to revision.

2012 Release Schedule

Released On: 1/6 2/3 3/9 4/6 5/4 6/1 7/6 8/3 9/7 10/5 11/2 12/7 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov