Labor market grew 353,000 in January, soaring past expectations
Target Tabloid – The U.S. economy added 353,000 jobs in January, a shockingly strong pickup, even as higher interest rates continue to ripple through the economy.
The unemployment rate held at 3.7 percent, and has now been below 4 percent for two years, the longest stretch since the 1960s.
Job gains were roughly double economists’ predictions of 177,000, underscoring that the labor market is propelling the economy forward, despite some high-profile layoffs at technology and media companies in January.
Robust consumer spending has allowed employers to hire at a rate that’s fast enough to keep up with population growth, including a surge in immigrant arrivals, and accelerating wage growth continues to outpace inflation, boosting workers’ spending power.
“This was a blockbuster jobs report,” said Jason Furman, an economist at Harvard University and former adviser to the Barack Obama White House. “The continued strength of the labor market is truly stunning. It’s yet more evidence that we’re not close to having been in a recession.”
The data also indicated that the labor market in 2023 was even stronger than previously thought, with upward revisions of 126,000 jobs gained in November and December combined.
The report is a major victory for President Biden, especially heading into the election, as several recent benchmarks, including strong GDP and falling inflation, suggest a booming economy that even consumers are starting to notice.
Consumer sentiment in January reached a high not seen since July 2021, according to a closely watched index by the University of Michigan.
“America’s economy is the strongest in the world,” Biden said in a statement. “Today, we saw more proof, with another month of strong wage gains and employment gains of over 350,000 in January.”
Payrolls swelled across industries in January after months of job growth concentrated in a few industries. Professional and business services, which covers a range of white-collar jobs that had been hit hard by interest rate hikes, added 74,000 jobs, soaring past the sluggish average monthly gain of 14,000 jobs in 2023. Fueled by a rapidly aging baby boomer population, health care added 70,000 jobs, with the strongest gains in ambulatory health care, hospitals and nursing homes.
Source: https://www.washingtonpost.com/