The new unemployment numbers again out-performed expectations, and drove the unemployment rate down to 8.3%. Overall, 243,000 jobs were added in January and, importantly, the number of private sector jobs grew by 257,000. The number of government employees again dragged down the total, but by less than in previous months.
As I have mentioned before, throughout 2011, each month, the total jobless rate was affected by the fact that the much maligned Stimulus funding was evaporating and federal, state and local governments were shedding jobs. The government sector lost 276,000 jobs in the last year. If the government employment number is at or near bottoming out, that the growth in private sector jobs will be even more obvious.