US Nonfarm Payroll Increases by 353,000 in January 2024; Unemployment Steady at 3.7%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 353,000 in January, similar to the revised gain of 333,000 in December. Payroll employment increased by an average monthly gain of 255,000 in 2023.

Notable job growth occurred in the following sectors in January:

• Professional and business services added 74,000 jobs, considerably higher than the average monthly increase of 14,000 jobs in 2023.
• Health care added 70,000 jobs, above the average 58,000 per month in 2023.
• Retail trade employment increased by 45,000 but has shown little net growth since early 2023.
• Social assistance gained 30,000 jobs, surpassing the average of 23,000 per month in 2023.
• Manufacturing employment increased by 23,000. Manufacturing employment experienced little net job growth in 2023.
• Government employment increased by 36,000 jobs, well below the average monthly gain of 57,000 in 2023.
• Information employment increased by 15,000 jobs. Overall, employment in the sector is down by 76,000 from its recent peak in November 2022.

Conversely, employment in mining, quarrying, and oil and gas extraction was down by 5,000. Employment was little changed in other major industries, including construction, wholesale trade, transportation and warehousing, financial activities, leisure and hospitality, and other services.

The unemployment rate held steady at 3.7% in January, and the number of unemployed persons was little changed at 6.1 million.

The BLS notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for November was revised up by 9,000—from 173,000 to 182,000—and the change for December was revised up by 117,000—from 216,000 to 333,000. With these revisions, employment in November and December combined is 126,000 higher than previously reported.