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Nation's job growth slows in January

By Jesus Sanchez, Times Staff Writer
9:27 AM PST, February 2, 2007

The nation's employers added a fewer than expected 111,000 jobs in January as hiring weakened in healthcare and employment gains in construction were offset by losses in manufacturing, the government reported today. The unemployment rate rose slightly to 4.6%.

While job growth weakened in January, the previously reported increases in payrolls in December and November were revised upward. Many economists said the job market and economy remained relatively strong going into the new year.

"The less than expected 111,000 gain in January should be viewed alongside the very strong gains that preceded it, and we seriously doubt that it represents anything more than a blip in what looks to be a quite robust labor market," said economist Joshua Shapiro in a research note for the New York-based consulting firm MFR.

The January job report had little impact on Wall Street, where the Dow Jones industrial average was down 13.70 points to 12,659.98 in late morning trading.

The healthcare industry added 18,000 jobs in January from the previous month, the Labor Department said. However, January's increase was down from the large 43,000 jump in jobs reported in December.

Other service industries also reported payroll gains in January, including food services, up 21,000, and architectural and engineering services, up 9,000 jobs. Relatively mild winter weather during the early part of the month might have given a boost to the construction industry, which added 22,000 positions during the month.

Manufacturing employment remained a weak spot. Factory payrolls dropped by 16,000 jobs, with losses reported in the motor vehicle, computer, furniture and other industries.

"Employee buyouts and larger-than-usual seasonal plant shutdowns contributed to the large job decline in motor vehicles," said Philip L. Rones, acting commissioner of the Bureau of Labor Statistics, in a statement.

The average hourly pay for nonsupervisory workers rose by 3 cents, or 0.2%, in January to $17.09.


jesus.sanchez@latimes.com


   

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