Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 5, 1994 TAG: 9402050021
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE:
DATELINE: WASHINGTON LENGTH: Medium
The rate was up from December's three-year low of 6.4 percent. Had January's rate been calculated using the old method, it would have dropped to 6.3 percent, the Labor Department said. Using the new system, the December rate would have been 7 percent.
Economists said the report presented a mixed message on the health of the nation's economy. Overall job growth had been relatively strong in recent months.
While Friday's report suggested a slowing in economic growth, it was not solid enough to stop the Federal Reserve from pushing up short-term interest rates to keep inflation in check.
Economist David Wyss of DRI/McGraw-Hill in Lexington, Mass., said the only news in the unemployment report that might have alarmed bond traders was the increase in average hourly earnings to $11.03 from $10.95 in December. It was the biggest one-month gain since 1983.
"The sharp rise . . . may have scared them a little," he said.
The Labor Department changed its method of counting those looking for work, saying its old survey undercounted the presence of women in the work force.
Friday's report said non-farm payrolls grew 62,000 in January, much lower than the 180,000 most economists had expected. That figure has hovered around 180,000 in recent months.
The service industry, which has led job growth in recent months, remained flat, while government payrolls declined about 10,000.
The length of the average work week edged up to 34.8 hours from 34.6 hours in December.
by CNB