Posted: Friday, February 7th 2014 at 8:49am
Jobless rate slips to 6.6 pct.
By The Associated Press
WASHINGTON (AP) -- Hiring was surprisingly weak in January for the second straight month, likely renewing concern that the U.S. economy might be slowing after a strong finish last year.
The Labor Department says employers added 113,000 jobs, less than the average monthly gain of 194,000 in 2013. This follows December's tepid increase of just 75,000. Job gains have averaged only 154,000 the past three months, down from 201,000 in the preceding three months.
Still, more people began looking for work in January, a sign that they were optimistic about finding work. Some of these people found jobs, thereby reducing the unemployment rate to 6.6 percent. That's the lowest rate since October 2008.
Cold weather likely held back hiring in December, economists said, but the impact faded in January. Construction firms, which sometimes stop work in bad weather, added 48,000 jobs last month.
The figures follow recent signs of economic weakness in the United States and overseas that have sent stock prices sinking. Upheaval in developing countries has further spooked investors. All the turmoil has renewed doubts about the Federal Reserve's next steps.
The anxiety marks a reversal from a few weeks ago, when most analysts were increasingly hopeful about the global economy. U.S. growth came in at a sturdy 3.7 percent annual pace in the second half of last year. The Dow Jones industrial average finished 2013 at a record high. Europe's economy was slowly emerging from a long recession. Japan was finally perking up after two decades of stagnation.
But then came December's weak jobs total. And on Monday, an industry survey found that manufacturing grew much more slowly in January than in December. A measure of new orders in the report sank to the lowest level in a year. That report contributed to a dizzying 326-point plunge in the Dow Jones industrial average.
Also this week, automakers said sales slipped 3 percent in January. And last week, a measure of signed contracts to buy homes fell sharply, according to the National Association of Realtors.
On a more hopeful note, a survey of service sector companies, including retailers, banks and restaurants, found that they grew faster in January than in December.
Friday's report showed that some higher-paying industries added jobs in January. Factories created 21,000 new positions. Professional and technical services, which includes architects and engineers, added 20,000.
But health care employment was mostly unchanged for a second straight month, after adding 17,000 jobs a month last year. And retailers cut 12,900 jobs, the most in 18 months.
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