Traders are focusing on silver linings in the weaker-than-expected January employment report, UBS' Art Cashin told CNBC on Friday.
Despite falling short of consensus estimates, the January employment report contained a 6.6 unemployment rate—down 0.1 from December—and increasing labor participation. Those factors made traders disregard the sluggish job growth of 113,000, said Cashin, UBS' director of floor operations at the NYSE.
The jobs data also showed younger workers entering the labor force at a faster clip, Cashin said.
"The market decided at first that the headline number was terrible, and then it said, 'You know, this isn't too bad,'" Cashin said on "Squawk on the Street."