Manufacturers Add Jobs

The American unemployment rate dropped below 5% for the first time since February 2008, according to new numbers released Feb. 5 by the Bureau of Labor Statistics. More good news: Manufacturing created almost as many new jobs in January as it did in all of 2015.

There is some not-as-good news, too: Hiring has slowed, evidenced by the addition of 151,000 new jobs in January, a little more than three-quarters of the 197,000 in the forecast. And, reports indicate the economy may have hit an air pocket after a good year for job creation.

The weakness, said Michael Dolega, TD Economics Senior Economist, appears concentrated in temporary help, which cut about 25,000 jobs it added in December.

“For those looking for confirmation that the U.S. economy may be headed for a recession, this report will surely disappoint,” Dolega said.

Manufacturing added 29,000 new jobs reported in January. (By comparison: manufacturing added just 33,000 jobs in all of 2015, and all of them popped up in the fourth quarter.) Four straight months with a net gain—and the strongest single month since November 2014—are worth at least a little celebration.

Source: Industry Week S