January Jobs Report May Provide Economic Clarity Amid Disruptions - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Washington Wire
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Top Stories
Washington Wire RSS Get our newsletter
Order Prints
February 7, 2020 Washington Wire
Share
Share
Tweet
Email

January Jobs Report May Provide Economic Clarity Amid Disruptions

Associated Press

WASHINGTON (AP) — With China's viral outbreak disrupting trade and Boeing's troubles weighing on American factories, the January U.S. jobs report on Friday may provide timely evidence of the U.S. economy's enduring health.

Economists estimate that employers added 161,000 jobs last month and that the unemployment rate remained at a 50-year low of 3.5%, according to data provider FactSet. That pace of hiring would be weaker than the monthly average of the past two years yet still more than enough to reduce unemployment over time.

The closely watched jobs report comes in the same week that President Donald Trump boasted of his economic record in his State of the Union address, previewing a central campaign theme in his re-election bid.

Friday's hiring figures may call into question some of the president's triumphalism about the job market under his watch. Along with January's hiring data, the Labor Department is expected to report that the United States had 500,000 fewer jobs in March 2019 than previously estimated. That would be a relatively small change in an economy with 150 million jobs. But it would still indicate that there was less hiring in the 12 months that ended in March, at a time of robust economic growth, than had been assumed.

“It takes a little bloom off the rose,” said Joe Brusuelas, an economist at RSM, a tax advisory and consulting firm.

The change stems from annual revisions the government makes after receiving a count of total jobs from tax records, which are released with a delay. Sharp revisions, like those expected on Friday, typically mean that the government didn't precisely estimate how many new companies were started or how many went out of business.

Preliminary results released in August suggest that the revisions largely reflect ways in which the economy is evolving. For example, the revisions will likely reduce total retail jobs by 146,000, a reflection of the retail sector's continuing troubles. Macy's this week became the latest department store to announce job cuts: The company said it would close 125 stores and lay off 2,000 workers at its corporate offices.

At the same time, the Labor Department estimated in August that its revisions would add nearly 79,000 jobs in transportation and warehousing, a sector fueled by the rapid growth of online shopping. A category that includes newer higher-tech jobs, like data analysis, will gain an estimated 33,000 jobs.

Still, the downward revision doesn't necessarily point to a broader slowdown in hiring. Unseasonably warm weather last month might have given a boost to January's job growth. Warmer weather means that more construction work can be done, raising demand for workers. And restaurants and hotels tend to add staff as more Americans travel and eat out in warm weather.

China's deadly viral outbreak has sickened thousands and shut down stores and factories in that country. But its impact likely came too late in the month to affect Friday's U.S. jobs report.

Factory hiring, however, may be reduced by Boeing's decision to suspend production of its troubled aircraft, the 737 MAX. The aerospace industry last year added about 1,500 jobs a month but will likely shed jobs for at least the first few months of this year.

One Boeing supplier, Spirit Aerosystems, has said it will cut 2,800 jobs. Those layoffs occurred after the government's survey for last month, so they probably won't show up until the jobs report for February is issued next month.

Economists will also closely watch wage data, because pay raises have slowed since early 2019 despite the ultra-low unemployment. Pay growth might have picked up slightly in January because 21 states raised their minimum wages at the start of the year, benefiting nearly 7 million workers, according to the Economic Policy Institute.

In the meantime, consumers remain confident about the economy and are spending steadily, benefiting such industries as restaurants, hotels, health care and banking.

Manufacturing also grew in January after five months of contraction, according to a survey of purchasing managers by the Institute for Supply Management. Even so, while orders and production grew, factories were still cutting jobs, the survey found. American companies as a whole have cut back sharply on investment and expansion, in part because of Trump's trade conflicts. That pullback in spending may continue to hamper manufacturers.

Still, Americans are buying more homes, buoyed by lower borrowing costs that stem in part from the Federal Reserve's three interest rate cuts last year. Home construction surged in December to its highest level in 13 years.

All told, economists have forecast that the economy will expand at a roughly 2% annual rate in the first three months of this year, roughly the same as its 2.1% annual growth in the final three months of last year.

Older

Aetna Steadily Filling 380 New North Carolina Jobs

Newer

Bill Weld Warns Democrats Against Nominating Bernie Sanders

Advisor News

  • RICKETTS RECAPS 2025, A YEAR OF DELIVERING WINS FOR NEBRASKANS
  • 5 things I wish I knew before leaving my broker-dealer
  • Global economic growth will moderate as the labor force shrinks
  • Estate planning during the great wealth transfer
  • Main Street families need trusted financial guidance to navigate the new Trump Accounts
More Advisor News

Annuity News

  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
  • Prudential launches FlexGuard 2.0 RILA
  • Lincoln Financial Introduces First Capital Group ETF Strategy for Fixed Indexed Annuities
  • Iowa defends Athene pension risk transfer deal in Lockheed Martin lawsuit
More Annuity News

Health/Employee Benefits News

  • Our View: State failed Hoosiers on Medicaid
  • Researchers at Johns Hopkins University School of Nursing Report New Data on Managed Care (The Quality Incentive Program and Patient-Centered Dialysis Care: Mastering the Numbers): Managed Care
  • Studies from Geriatric Research Education and Clinical Center Have Provided New Information about Managed Care (Effects of Functional Impairments and Frailty on the Association of Cognitive Impairment with Total Healthcare Costs: A Prospective …): Managed Care
  • Report Summarizes Asthma Study Findings from University of Massachusetts Amherst (Parent-identified opportunities for improving asthma care for children insured by Medicaid following implementation of statewide Medicaid Accountable Care …): Lung Diseases and Conditions – Asthma
  • GOP won’t allow vote on Obamacare premium relief as credits near end. Now what?
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • The 2025-2026 risk agenda for insurers
  • Jackson Names Alison Reed Head of Distribution
  • Consumer group calls on life insurers to improve flexible premium policy practices
  • Best’s Market Segment Report: Hong Kong’s Non-Life Insurance Segment Shows Growth and Resilience Amid Market Challenges
  • Product understanding will drive the future of insurance
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet