ECONOMY
US Economy Added Stronger Than Expected 353,000 Jobs In January
Shutterstock
The U.S. economy added 353,000 jobs in January in a surprising hiring surge that surpassed expectations.
January’s job gains mark an increase over December, which was revised upward from the 216,000 added jobs originally reported to 333,000 jobs, according to Friday’s report from the Bureau of Labor Statistics.
The unemployment rate held steady at 3.7% in January, unchanged from December, marking two straight years of unemployment under 4%. The 3.4% unemployment rate in April 2023 marked a 50-year low. There were 6.1 million unemployed people in January, little changed from 6.3 million unemployed in December, the agency said
January’s strongest jobs gains came in professional and business services, with 74,000 jobs added, followed by health care, with 70,000 jobs added. Retail trade added 45,000 jobs, while 36,000 jobs were added in the government sector.
Meanwhile, 5,000 jobs were lost in the mining, quarrying, and oil and gas extraction industry.
Average hourly earnings for all workers on private, nonfarm payrolls rose by 19 cents, or 0.6%, to $34.27 in January. Average hourly wages were up 4.5% year-over-year, compared to 4.1% in December.
The Federal Reserve this week held interest rates steady for the fourth time in a row, after aggressive hikes since 2022 to combat inflation.
The central bank maintained the target range for the federal funds rate at 5.25% to 5.5%, despite recent indicators of strong economic growth and a resilient labor market even as inflation remains above its target of 2%.
The robust job gains may make the Fed cautious about potentially cutting the interest rate at its next meeting, after previously predicting it would lower its key interest rate by three-quarters of a point in 2024, indicating three typical cuts of a quarter point each.
Federal Reserve Chair Jerome Powell said at a press conference Wednesday a cut would also be unlikely after the next meeting in March.
“Based on the meeting today, I would tell you that I dont think its likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that. But thats to be seen,” Powell said.
In December, Powell said the prospect of a so-called soft landing, bringing inflation back down to 2% without a significant spike in unemployment, is still uncertain.
“This result is not guaranteed, Powell said at the time. It is far too early to declare victory.
On Wednesday, Powell declined to confirm whether the Fed would commit to a series of three rate cuts once it makes the first cut, saying it would depend on the data.
TMX contributed to this article.
