Seasonal hiring fuels Jan. job growth

By Leigh Strope
Associated Press

WASHINGTON — A seasonal hiring spree at stores, restaurants and bars in January fueled the first recorded U.S. job growth in four months, and the unemployment rate unexpectedly fell to 5.7 percent. But economists cautioned the gains appeared to be on paper only.

The jobless rate dropped 0.3 percentage point from the 6 percent posted the previous two months, the Labor Department reported yesterday. That was the largest one-month drop in nearly five years.

In Hawai'i, the latest numbers show unemployment dropped in December to 3.8 percent, the lowest level since December 2000 and significantly below the national rate. Some Hawai'i economists say that is a sign people are avoiding the job market altogether by entering school or opting not to work.

Analysts had expected the national jobless rate to hold steady with modest job growth instead of the payrolls increase of 143,000 — the largest since November 2000. That follows a loss of 156,000 jobs in December.

The national report appeared to offer good news for job seekers, but statistical quirks overstated January's gains in hiring.

"I don't think anyone is taking any solace in this," said Mark Zandi, chief economist at Economy.com.

"The average American out there knows how bad the job market is. They don't need the unemployment report to tell them otherwise."

The report initially lifted Wall Street, but the elevation of the nation's terror attack alert level wiped out small gains.

Retail jobs were the bulk of January's new hiring, with 101,000 positions added after 99,000 were cut in December.

Holiday hiring was well below normal, meaning fewer seasonal workers were laid off in January. That means seasonal adjustments accounted for January's large gain, economists said.