U.S. Nonfarm Payroll Increases by 467,000 in January; Unemployment Inches Higher to 4.0%

The U.S. Bureau of Labor Statistics (BLS) reported today (2-4-22) that total nonfarm payroll employment increased by 467,000 in January. The growth follows an increase of 199,000 in December, 210,000 in November, 531,000 in October, 194,000 in September, 235,000 in August, 1.1 million in July, and 962,000 in June. Nonfarm payroll employment has increased by 19.1 million since April 2020 but is down by -2.9 million, or -1.9%, from its pre-pandemic level in February 2020.

In January, notable job growth occurred in leisure and hospitality, professional and business services, retail trade, and transportation and warehousing.

In January, the unemployment rate increased by 0.1 percentage point to a reading of 4.0%. The number of unemployed persons increased to 6.5 million. Over the year, the unemployment rate has declined by 2.4 percentage points and the number of unemployed persons has declined by 3.7 million. In February 2020, prior to the coronavirus pandemic, the unemployment rate was 3.5% and unemployed persons numbered 5.7 million.

Employment showed little change over the month in construction, financial activities, information, manufacturing, mining, and other services.