WASHINGTON — The U.S. economy added 151,000 jobs in January, a slowdown from recent months but still a sign of a solid job market. Employers raised pay, more people felt confident enough to look for work and the unemployment rate dipped to 4.9 percent, its lowest level since 2008.
Friday's Labor Department report showed that the U.S. job market remains resilient even as the overall economy is struggling in areas such as manufacturing and facing severe weakness overseas. The report provides a key piece of evidence for the Federal Reserve, which is weighing whether to raise interest rates again in the face of global risks after lifting rates from record lows in December.
The January hiring gain, though modest, followed robust job growth of 280,000 in November and 262,000 in December. Last month, companies shed education, transportation and temporary workers but stepped up hiring in manufacturing, retail and food services.
Aside from the slowdown in overall hiring, economists were encouraged by most other aspects of the report.
"Positive job growth, the drop in the unemployment rate to 4.9 percent and the uptick in wages show the U.S. is heading in the right direction," said Beth Ann Bovino, U.S. chief economist at Standard & Poor's.
Douglas Holtz-Eakin, a former director of the Congressional Budget Office, suggested looking past the tepid overall job gain to focus instead on the more reassuring figures for pay, the unemployment rate and the rising number of people who feel now is a good time to look for work.
"The January report is a solid report in disguise," said Holtz-Eakin, president of the conservative American Action Forum.
Still, stock investors greeted the jobs report with sharp losses. The Standard & Poor's 500 index had sunk about 170 points, more than 1 percent, by early afternoon.
See Saturday's Arkansas Democrat-Gazette for full details.