U.S. Adds 255,000 Jobs, Continues Strong Wage Growth Despite Manufacturing Slump

The January jobs report showed the U.S. economy adding 255,000 jobs, exceeding expectations in a strong economy, while average-hourly-wages capped an 18-month run of at least 3 percent growth.

The U.S. Bureau of Labor Statistics (BLS) reported that while the unemployment rate ticked up to 3.6 percent from a record-low of 3.5 percent, the labor-force participation rate increased to 63.4 percent in January — its highest point since June 2013 — signaling that more Americans are re-entering the job market. The employment-to-population ratio also rose to 61.2 percent, the best number since November 2008 and 0.5 percentage points higher than a year ago.

President Trump’s reelection campaign immediately promoted the news as proof of the “#TrumpEconomy.”

Over the past three months, the economy has averaged a gain of 211,000 jobs. December’s revised report of 147,000 jobs marked a ten-year stretch of job growth, the longest in 80 years of record-keeping by the federal government.

Construction added 44,000 jobs, hospitality and health care added 36,000, and transportation and warehousing added 28,000. But manufacturing cut 12,000 jobs amid an ongoing trade war with China.

Blue collar wages rose 7 cents to $28.44 an hour, a 3.1 percent increase from last year. The report also revised the December wage gains rate from 2.9 percent to 3 percent, marking a year-and-a-half stretch of hourly wages growing over 3 percent.

Last month, Trump touted a “blue collar boom” in front of world leaders at the World Economic Forum in Davos, Switzerland.

“When I spoke at this forum two years ago, I told you that we had launched the great American comeback. Today, I’m proud to declare that the U.S. is in the midst of an economic boom, the likes of which the world has never seen before,” Trump said.