The labor market report did little to settle the questions about future growth.

The labor market report for January continued the recent pattern of mixed economic data. The good news was the drop to 6.3% in the unemployment rate, which had been at 6.7% for both November and December. The unemployment rate is calculated using the results of the household survey. The survey reflected an increase of 201,000 people working in January as compared to December, but it also included a decline of 406,000 people looking for a job. This trend has been developing over the last six months where fewer people are looking for work. The issue is whether these people are permanently out of the workforce as lifestyles change due to the pandemic.

 

PROBANK AUSTIN ADVISOR - FEBRUARY 8, 2021