First Jobs Report Under Trump Administration Released

American employers added an impressive 227,000 jobs overall in January while the unemployment rate ticked up, according to the first jobs report released by the Bureau of Labor Statistics under President Trump.

"That’s an acceleration from the revised monthly average of 148,000 jobs added over the previous three months," said Mark Hamrick, Bankrate.com's senior economic analyst.

He continued: "Winds of positive change might be blowing in the goods-producing sector, adding 45,000 last month, with the biggest contribution coming from construction. Between automation and the strong dollar, manufacturing continues to face headwinds."

In addition to the sizable increase in jobs, the labor force participation rate also went up; this helps account for the fact that the unemployment rate moved from 4.7 percent to 4.8 percent. As more people come back to the workforce, more people will tell researchers that they're looking for a job, which increases the unemployment figure but is generally seen as a good sign overall.

The larger labor force may explain the disappointing wage growth figures as well. With more people entering the workforce, employers aren't forced to give out raises to attract the talent they need.

"Wage growth declined to just 2.5 percent despite the increase in minimum wage laws in January across numerous states," said Chief Economist Curt Long at the National Association of Federally-Insured Credit Unions.

"The lack of wage growth suggests further room for tightening in the labor market," he added. "So long as that remains true, and with inflation still below target, the Fed will be content to hold off on further interest rate hikes."

And for the future? Though the federal government isn't solely responsible for the health of the economy, a fair amount may depend on the agenda the new White House and Congress decide to pursue.

"While there’s a great deal of anticipation surrounding steps that President Trump and the GOP-led Congress are expected to take to boost the economy, that’s going to take more time," Hambrick said. "The potential benefits of tax cuts and spending on improvement of roads and other infrastructure components remain months away."

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