Buoyed by strong gains in construction, employment in the goods-producing sector, which had average monthly losses of 7,000 in 1999, increased 31,000 last month. Because of unseasonably warm weather during the survey reference period, construction employment increased 116,000 in January. Rapid employment growth continued in the service-producing sector. Despite a significant drop in department store employment, there was a net increase of 43,000 jobs in retail trade. Following four months of stagnant growth, business services also posted strong gains, adding 63,000 jobs in January.
Many analysts express increased concern about impending labor shortages.
The tight labor market is reflected in the unemployment rate and in the pool of available workers, which has shrunk from about 16 million in 1992 to fewer than 10 million today. This count includes individuals aged 16 to 64 who are either unemployed or not in the labor force, but who report that they want jobs. The unemployment rate is at a 30-year low, but it varies with demographic factors like age, race, sex, and education. Young workers, who have less experience, predictably have much higher unemployment rates than older cohorts. Just as predictably, those with more education have significantly lower unemployment rates.