WASHINGTON —
In the most impressive surge for the job market since early last year, the United States added 243,000 jobs in January, far more than economists expected. The unemployment rate dropped to 8.3 percent, the lowest in three years.
Hiring accelerated across the economy and up and down the pay scale. The high-salary professional services industry added 70,000 jobs, the most in 10 months. Manufacturing added 50,000, the most in a year.
“This is a very positive employment report from almost any angle,” said Brian Bethune, an economics professor at Amherst College.
The report seemed certain to shake up the presidential campaign, which is expected to turn on the economy. The unemployment rate is the lowest since February 2009, one month after President Barack Obama took office.
The report today from the Labor Department sent money pouring into the stock market, already off to its best start in 15 years because of improving confidence in the economy, and out of more conservative investments in bonds.
The Dow Jones industrial average shot 160 points higher to 12,865 in the first hour of trading. That is 55 points better than its highest close since the financial crisis struck in the fall of 2008.
It was the most jobs added since and March and April of last year, when 246,000 and 251,000 jobs were created. Before that, the last month with stronger hiring, excluding months skewed by temporary census jobs, was March 2006.
The government said hiring was stronger in November and December by 60,000 jobs than first estimated. It was also stronger over the past two years than previously thought. The economy added 1.82 million jobs last year, nearly twice as many as in 2010.
The unemployment rate was down two notches from the 8.5 percent reading last month. It was also the fifth consecutive month the rate has fallen, the first time that has happened since late 1994.
Employers have added an average of 201,000 jobs a month in the past three months. That’s 50,000 more jobs per month than the economy averaged in each month last year.
The Labor Department’s January jobs report was filled with other encouraging data and revisions. The economy added 200,000 more jobs in 2011 than first thought.
The unemployment rate is nearly a percentage point lower than over the summer, when many feared a recession was imminent.
Impressively, the job gains last month were spread across the economy. Even the beleaguered construction sector added 21,000 jobs, its second month of strong gains. That figure has probably been helped by unseasonably warm weather this winter.
The leisure and hospitality industry, which includes restaurants and hotels, added 44,000 jobs. Retailers added nearly 11,000.
The unemployment rate fell even as more people began looking for work. But a much larger number said they found work.
More jobs and higher incomes should help consumers boost spending and increase economic growth.
Even with the gains, the job market faces a long way back to full health. The nation has about 5.6 million fewer jobs than it did when the recession began in late 2007.
There are still 12.8 million people out of work, though that is the fewest since the recession ended. An additional 11 million are either working part-time but would prefer full-time work, or have stopped searching for jobs.
When all those groups are combined, nearly 24 million are considered “underemployed. The so-called “underemployment” rate ticked down in January to 15.1 percent, from 15.2 percent.
Several reports signaled this week that the economy is improving gradually. Manufacturers expanded at the fastest pace in seven months in January, a private survey showed.
And fewer people sought unemployment benefits last week, the Labor Department said. The four-week average of applications fell to its second-lowest level since June 2008. The drop shows that companies are cutting fewer jobs, which usually leads to more hiring.
Americans spent more at big chain retail stores last month compared with a year earlier. And automakers began 2012 with a strong sales gain in January. Healthier auto sales can boost a range of companies, from steel makers to parts suppliers to shippers.
The economy expanded at a 2.8 percent annual pace in the October-December quarter, a full percentage point higher than in the previous quarter.
Even so, economists expect slower growth this year. Much of the fourth quarter’s expansion was due to companies ordering more goods to restock their warehouses. Restocking is likely to slow in the first three months of this year. That would drag on growth.
Europe’s financial crisis could also slow demand for U.S. goods. And average wages failed to keep up with inflation last year. That leaves consumers with less spending power, which can hamper growth.
News
Unemployment rate hits 8.3 percent after hiring burst
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A fallen soldier returns home
An Army carry team moves a transfer case containing the remains of Spc. Arronn D. Fields early Thursday morning at Dover Air Force Base, Del.
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Official touts trade with northern neighbor
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Caution urged for summer’s kickoff
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Letters delivered
Several positions will be eliminated this summer at the Terre Haute mail processing facility as the U.S. Postal Service begins moving the operation to Indianapolis, a U.S. Postal Service spokesman has confirmed.
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Companies seek Vigo tax abatements
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High-speed chase suspect caught in West Virginia
The suspect in a cross-country, high-speed chase originating in Terre Haute last week was reportedly in federal custody Thursday evening.
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Second victim of deadly I-70 semi-trailer crash identified
The Vigo County Coroner’s Office has identified the passenger of a semi-tractor crash on May 16 in the eastbound lanes of Interstate 70 near the 12-mile marker.
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Brazil remembers a Fallen Son
A small town seemed sadly quiet Wednesday, waiting to honor a local fallen warrior.
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ISU OKs four-year degree guarantee
Indiana State University has announced a four-year “graduation guarantee” for students enrolling this fall and beyond.
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Dems tout good side of compromise
Indiana Senate Minority Leader Vi Simpson, chosen to run as the Democratic candidate for lieutenant governor with gubernatorial candidate John Gregg, said during a stop Wednesday in Terre Haute that bipartisan experience is a key factor in creating jobs and legislation to help Hoosiers statewide.
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Grant money will help replace Collett Park area tree canopy
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Schools surpass goal for Riley
The lives of about 5,000 children in Vigo County are touched each year by Riley Hospital for Children in Indianapolis, and now, the Riley Children’s Foundation has been touched with gratitude by students in the Vigo County School Corp.
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Historic preservation proposal discussed during open forum
More than three dozen people turned out Wednesday to ask questions about a proposed Terre Haute ordinance that would set up a formal process to preserve historic properties in the city.
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Banks of the Wabash workers getting festival ready to roll
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Search on for Gibault walkaway
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The closing of St. Ann Parish: Shuttered parish will help others live on
St. Ann Parish celebrated its last Mass on Sunday.
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Foreclosure lawsuit questions dog mayor
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TB case cause for concern, not panic
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Dr. John Bolinger said the suspected TB case at Woodrow Wilson Middle School “is a concern,” but Vigo County and state health departments “are there to handle situations like this. They’ll do the right thing.” -
Woodgate residents considering legal action
Residents came in force Tuesday to try to compel the Vigo County Board of Commissioners to change how a development is progressing near Woodgate subdivisions in southern Vigo County.
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Clay County soldier dies in Afghanistan
A 27-year-old Knightsville resident and Northview High School graduate died Monday from a rocket propelled grenade attack in Afghanistan while serving with the Indiana National Guard.
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Farmersburg man arrested on rape charge
A Farmersburg man has been arrested on suspicion of rape and criminal confinement after a May 4 incident that allegedly occurred at his parents’ residence.
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Truck driver in double fatal crash identified
A truck driver killed in a crash on Interstate 70 in Vigo County last Wednesday has been identified as Alfonso Ochoa Diaz, 60, River Rouge, Mich.
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Two arrested on reckless driving charges
Indiana State Police on Tuesday nabbed two drivers accused of reckless driving in northern Vermillion County.
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Garfield Towers resident, injured in fire, dies
A man who sustained burns in the Garfield Towers fire has died at an Indianapolis hospital.
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18-year-old mother charged with child neglect after infant injured
An 18-year-old mother has been charged with child neglect related to injuries sustained by a Terre Haute infant in April.
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Gregg introduces State Sen. Vi Simpson as choice for lieutenant governor
Indiana Democratic gubernatorial candidate John Gregg this afternoon introduced State Sen. Vi Simpson, D-Ellettsville, as his running mate for the 2012 election.
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Car pinned under school bus in Greene County crash
Police say a car plowed into the back of a school bus stopped on a southern Indiana highway, with the car’s entire engine compartment ending up lodged underneath the bus.
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Vigo County Jail Log: May 23, 2012
The following individuals were booked into the Vigo County Jail by area law enforcement on Monday and Tuesday, based on jail records.
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Grrrr-ateful for donation
K-9 Officers Jasper, Luka, Diesel and Carón didn’t like the snarls and growls coming from a “burglar” on Monday morning at Sarah Scott Middle School.
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