Total nonfarm payroll employment increased by 227,000 in
January, and the unemployment
rate was little changed at 4.8 percent, the U.S. Bureau of Labor
Statistics reported
today. Job gains occurred in retail trade, construction, and
financial activities.
So, how is it that employment increased and yet the unemployment rate did not change?
The unemployment rate is the total number of unemployed person / Workforce. |
If the total number of nonfarm payroll employment has increased by 227,000 in January in different sectors and the unemployment rate has remained largely unaffected. |
This could be because the number of people joining the workforce is much more than the number of people getting a job in different sectors. This kept the unemployed rate same as before. Here, the number of people joining the workforce would be much more than 227,000 that increased the actual number of the unemployed person and kept the proportion same. |
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