US employment rose in January as economy picked up
02 Feb 2013
US employment saw a moderate uptick in January with higher job gains in the previous two months than earlier reported, belying reports of a stalled economy at the end of last year.
Adding to the upbeat sentiment, according to separate reports yesterday, activity rose to a nine-month high in January as new orders picked up, while car and truck sales surged and consumer confidence perked.
The reports, that led to the surge in the US stock markets to levels not seen in over five years, came in marked contrast to a government report earlier in the week that said the economy shrank unexpectedly in the final months of 2012, albeit for what most economists consider fleeting reasons.
The Labor Department said, employers added 157,000 jobs last month and 127,000 more jobs were created in November and December than previously reported, while revisions performed each January to the prior year's data showed the labour market was in better shape in 2012 than initially thought.
While unemployment was up 0.1 percentage point to 7.9 per cent, the closely followed report showed increasing hourly earnings with solid gains in construction and retail employment.
According to the Institute for Supply Management its index of national factory activity was up to 53.1 last month, the highest level since April, from 50.2 in December, suggesting expansion in the manufacturing sector.
