By CHRISTOPHER S. RUGABER
AP Economics Writer
WASHINGTON – Economic growth is gaining momentum, with factories busy and service firms expanding, but one critical area still lags: job creation.
The Labor Department will issue its January jobs report today, and economists forecast that it will show only modest hiring. Employers are expected to add a net total of 146,000 new jobs. That’s barely enough to keep up with population growth. The unemployment rate is likely to tick up to 9.5 percent from 9.4 percent in December.
Some analysts are more optimistic and think the job gains could be larger, after several positive economic reports were released Thursday. The service sector, which employs nearly 90 percent of the work force, expanded at the fastest pace in five years last month, retail sales increased, and factory orders grew in December.