The January jobs report was far stronger than had been predicted, with the economy adding 517,000 jobs.
Nursing homes and child care centers had been having trouble getting workers in the tight labor market, but both added a modest number of jobs in January. Nursing homes added 4,500 jobs, leaving employment 13 percent below its pre-pandemic level, while child care added 7,100 jobs, putting employment 5.5 percent below the pre-pandemic level.
Nonetheless, the population controls did somewhat change the household survey’s overall picture over the last year. With the new controls, the survey now shows employment increased by 2,760,000 from January of 2022 to January of 2023, with the new controls increasing employment by 810,000. Going in the other direction, the duration measures of unemployment all showed increases in January. The average duration increased from 19.5 weeks to 20.4 weeks, the median rose from 8.9 weeks to 9.1 weeks, while the share of long-term unemployed increased from 18.5 percent to 19.4 percent.The December data had indicated that the hourly wage was slowing to a pace that was arguably consistent with the Fed’s 2.0 percent inflation target. While the December growth was a modest 0.
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