Highlights
Nonfarm payroll -- always the biggest economic indicator for any month -- rose a lower-than-expected 146,000 in January and included a big net 48,000 in downward revisions to the prior three months.

Bonds jumped in initial reaction to the data, which will turn down the rate-hike heat in the Federal Reserve policy room. The dollar sank on the report.

Goods-producing jobs, which have been recovering for more than a year after four years of steep decline, fell 31,000 in the month with construction, likely hurt by unusually severe weather in the month, down 9,000 and motor vehicle & parts equipment losing 10,000. The Labor Department said auto shutdowns in the month were more extensive than usual.

Service-providing jobs, which have been steadily increasing over the last few years though at a shallow rate, rose a healthy 177,000 in the month. Retail jobs, which usually swing this time of year because of seasonal hiring in November and December and seasonal layoffs in January, rose a solid 19,000 in the month vs. a drop of 8,100 in December. Temporary help, which can also be a volatile category this time of year, rose a healthy 18,000.

Average hourly earnings were tame, rising 0.2 percent in January to $15.88 following a 0.2 percent rise in December. The year-on-year rate at 2.6 percent is also tame, though it does appear a little less tame given yesterday's disappointing fourth-quarter productivity data. The average workweek slipped back six minutes to 33.7 hours.

Manufacturing hours rose six minutes to 40.7 hours with over-time up the same to 4.6 hours. But manufacturing payrolls were a big disappointment once again, falling 25,000. The decline extends losses in the sector back to August (with revisions down 61,000 through January). The losses must call into question the long series of positive readings in a variety of anecdotal reports, especially the ISM's manufacturing employment index which continues to enjoy one of its best runs ever.

The unemployment rate -- the highlight of the report -- shot down 2 tenths to 5.2 percent, reflecting a rise in employment, a fall in unemployment, and a contraction in the labor force. Though the bulk of the data in Friday's report are soft, the lower unemployment rate may help limit impact in the financial markets.

Nevertheless, the employment-to-population ratio was a disappointment showing no change at 62.4, while the labor force participation rate slid 2 tenths to 65.8 percent.

Also limiting reaction in the financial markets are changes to the data, including benchmark revisions, new seasonal adjustments and new population controls. Economists will hash out the impact of these changes over the next few sessions.

Still, the results are soft and indicate little change in the economic recovery, which is proving to be a jobless one. Bonds are likely to rally through the day, perhaps pushing the yield on the key 10-year Treasury note back toward 4.00 percent.

2005 Release Schedule

Released On: 1/7 2/4 3/4 4/1 5/6 6/3 7/8 8/5 9/2 10/7 11/4 12/2 Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov