The Employment Situation in January

Today employment report showed that unemployment fell sharply by 9.0 percent and the private sector payrolls grew by 50,000 in January. Changes in private sector wage data show that 1.1 million jobs were added in 2010, the strongest private sector job growth since 2006. 0.8 percentage point fall in unemployment over the past two months, a positive, but remains unacceptably high.

The general trend of economic data in recent months has been encouraging initiatives in this administration to take into account, but there is still much to do. Today, on the administration to submit a comprehensive innovation strategy agenda, what information we need for the training of American leadership, investment in science and the infrastructure companies need to succeed faster. Innovation is a key factor in the economy have strengthened our position in the U.S. House to consolidate the world's best new businesses and industries, and the best jobs.

Moreover, the increase last month, estimated private sector job growth in November (now 128,000), and in December (now 139,000) upwards. These changes, along with an annual payroll survey changes, show that private sector employment has increased for eleven consecutive months.

General, payroll employment rose by 36,000 last month. Sectors with the largest wage increase in employment was in industry (49,000), retail and wholesale trade (36,700), professional and business services (31,000). Transport and Storage (38000), construction (32,000), finance (10,000) and local government (10,000) were the areas that will be reduced. Severe weather in some parts of the country can have an impact on employment and hours in some industries.

0.4 percentage point decrease in unemployment 9.0 percent in January due to a large increase in employment, measured by the household survey (which is separate from the payroll survey). Labor force participation rate was unchanged.

The general path of the economy has improved considerably over the past two years, but bumps in the road. Monthly employment and unemployment rates are volatile and employment estimates by major overhaul. Therefore, because the administration has always stressed the importance of not reading too much into a monthly report.

Austan Goolsbee is Chairman of the Council of Economic Advisers