{"id":574,"date":"2023-02-09T15:04:11","date_gmt":"2023-02-09T20:04:11","guid":{"rendered":"https:\/\/embarrdowns.com\/us-economy-adds-517k-jobs-in-january-unemployment-rate-hits-record-low\/"},"modified":"2023-02-09T15:04:11","modified_gmt":"2023-02-09T20:04:11","slug":"us-economy-adds-517k-jobs-in-january-unemployment-rate-hits-record-low","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/us-economy-adds-517k-jobs-in-january-unemployment-rate-hits-record-low\/","title":{"rendered":"US Economy Adds 517K Jobs in January, Unemployment Rate Hits Record Low"},"content":{"rendered":"

The U.S. economy added 517,000 jobs in January, according to a report from the Bureau of Labor Statistics, and the unemployment rate fell to 3.4%, its lowest level since 1969.[0]<\/a><\/sup> This marked a significant improvement from the December report, which showed 260,000 jobs added.[1]<\/a><\/sup> The January job gains were widespread across sectors, with leisure and hospitality, professional and business services, health care, government, retail, and construction leading the way.[2]<\/a><\/sup><\/p>\n

Average hourly earnings also rose 0.3% on the month, in line with the estimate, and 4.4% from a year ago, slightly higher than expectations.[3]<\/a><\/sup> This wage growth has been moderating in recent months, a trend that is likely to continue as the labor market remains tight and the demand for workers outpaces supply.[4]<\/a><\/sup><\/p>\n

In response to the latest jobs report, the Federal Reserve raised interest rates by a quarter percentage point to a range of 4.50-4.75%.[5]<\/a><\/sup> This was the eighth rate hike since March of last year, and a signal that the central bank is still taking an aggressive stance on inflation. Market expectations are now in favor of another quarter-point increase at the March meeting, and another increase in May or June that would bring the federal-funds rate to a target range of 5%-5.25%.[6]<\/a><\/sup><\/p>\n

The strong jobs report and the Fed\u2019s move to raise interest rates have some economists worried that the central bank may be tightening too much, driving the economy into a recession. However, average hourly earnings remain relatively low and inflation is still below the Fed\u2019s 2% target, which should give the central bank more confidence that inflation will continue to come down even if rate hikes are brought to an end.[7]<\/a><\/sup> <\/p>\n

Overall, the January job report was surprisingly strong and indicates that the U.S. economy is still on a positive trajectory, despite the Fed\u2019s rate hikes. The strong job growth and low unemployment rate should continue to boost consumer spending and confidence, leading to further economic growth.<\/p>\n

0. <\/span>“Jobs report blows by expectations, ratchets up inflation fight” Deseret News, 3 Feb. 2023, https:\/\/www.deseret.com\/2023\/2\/3\/23584433\/jobs-report-exceeeds-expectations-amid-inflation-lowest-unemployment<\/a><\/a><\/p>\n

1. <\/span>“Can a Seasonal Adjustment to Lost Jobs Justify a Tighter Fed?” Cato Institute, 6 Feb. 2023, https:\/\/www.cato.org\/blog\/can-seasonal-adjustment-lost-jobs-justify-tighter-fed-3<\/a><\/a><\/p>\n

2. <\/span>“Blowout Jobs Report a Boon for These 5 Staffing Stocks” Yahoo Finance, 9 Feb. 2023, https:\/\/finance.yahoo.com\/news\/blowout-jobs-report-boon-5-125912663.html<\/a><\/a><\/p>\n

3. <\/span>“Jobs Report: Hot Hiring, Lower Jobless Rate Lift Fed Rate-Hike Odds; S&P 500 Falls” Investor’s Business Daily, 3 Feb. 2023, https:\/\/www.investors.com\/news\/economy\/jobs-report-hiring-surges-as-jobless-rate-falls-sp-500-futures-lower\/<\/a><\/a><\/p>\n

4. <\/span>“How is the economy doing? Kind of good, actually.” Vox.com, 8 Feb. 2023, https:\/\/www.vox.com\/the-goods\/2023\/2\/3\/23584939\/jobs-report-economy-federal-reserve-inflation-recession-jay-powell<\/a><\/a><\/p>\n

5. <\/span>“Booming Job Gains Could Fuel Fed Debate Over Whether More Is Needed to Corral Inflation” The Wall Street Journal, 4 Feb. 2023, https:\/\/www.wsj.com\/articles\/booming-job-gains-keep-the-fed-on-track-to-push-rates-higher-11675449424<\/a><\/a><\/p>\n

6. <\/span>“Jobs report shows increase of 517,000 in January, crushing estimates, as unemployment rate hit 53-year low” CNBC, 3 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/03\/jobs-report-january-2023-.html<\/a><\/a><\/p>\n

7. <\/span>“Jobs report: A recession sure doesn’t seem imminent.” Slate, 3 Feb. 2023, https:\/\/slate.com\/business\/2023\/02\/jobs-report-hiring-economy-federal-reserve-biden.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. economy added 517,000 jobs in January, according to a report from the Bureau of Labor Statistics, and the unemployment rate fell to 3.4%, its lowest level since 1969.[0]<\/a><\/sup> This marked a significant improvement from the December report, which showed 260,000 jobs added.[1]<\/a><\/sup> The January job gains were widespread across sectors, with leisure and hospitality, professional and business services, health care, government, retail, and construction leading the way.[2]<\/a><\/sup><\/p>\n

Average hourly earnings also rose 0.3% on the month, in line with the estimate, and 4.4% from a year ago, slightly higher than expectations.[3]<\/a><\/sup> This wage growth has been moderating in recent months, a trend that is likely to continue as the labor market remains tight and the demand for workers outpaces supply.[4]<\/a><\/sup><\/p>\n

In response to the latest jobs report, the Federal Reserve raised interest rates by a quarter percentage point to a range of 4.50-4.75%.[5]<\/a><\/sup> This was the eighth rate hike since March of last year, and a signal that the central bank is still taking an aggressive stance on inflation. Market expectations are now in favor of another quarter-point increase at the March meeting, and another increase in May or June that would bring the federal-funds rate to a target range of 5%-5.25%.[6]<\/a><\/sup><\/p>\n

The strong jobs report and the Fed\u2019s move to raise interest rates have some economists worried that the central bank may be tightening too much, driving the economy into a recession. However, average hourly earnings remain relatively low and inflation is still below the Fed\u2019s 2% target, which should give the central bank more confidence that inflation will continue to come down even if rate hikes are brought to an end.[7]<\/a><\/sup> <\/p>\n

Overall, the January job report was surprisingly strong and indicates that the U.S. economy is still on a positive trajectory, despite the Fed\u2019s rate hikes. The strong job growth and low unemployment rate should continue to boost consumer spending and confidence, leading to further economic growth.<\/p>\n

0. <\/span>“Jobs report blows by expectations, ratchets up inflation fight” Deseret News, 3 Feb. 2023, https:\/\/www.deseret.com\/2023\/2\/3\/23584433\/jobs-report-exceeeds-expectations-amid-inflation-lowest-unemployment<\/a><\/a><\/p>\n

1. <\/span>“Can a Seasonal Adjustment to Lost Jobs Justify a Tighter Fed?” Cato Institute, 6 Feb. 2023, https:\/\/www.cato.org\/blog\/can-seasonal-adjustment-lost-jobs-justify-tighter-fed-3<\/a><\/a><\/p>\n

2. <\/span>“Blowout Jobs Report a Boon for These 5 Staffing Stocks” Yahoo Finance, 9 Feb. 2023, https:\/\/finance.yahoo.com\/news\/blowout-jobs-report-boon-5-125912663.html<\/a><\/a><\/p>\n

3. <\/span>“Jobs Report: Hot Hiring, Lower Jobless Rate Lift Fed Rate-Hike Odds; S&P 500 Falls” Investor’s Business Daily, 3 Feb. 2023, https:\/\/www.investors.com\/news\/economy\/jobs-report-hiring-surges-as-jobless-rate-falls-sp-500-futures-lower\/<\/a><\/a><\/p>\n

4. <\/span>“How is the economy doing? Kind of good, actually.” Vox.com, 8 Feb. 2023, https:\/\/www.vox.com\/the-goods\/2023\/2\/3\/23584939\/jobs-report-economy-federal-reserve-inflation-recession-jay-powell<\/a><\/a><\/p>\n

5. <\/span>“Booming Job Gains Could Fuel Fed Debate Over Whether More Is Needed to Corral Inflation” The Wall Street Journal, 4 Feb. 2023, https:\/\/www.wsj.com\/articles\/booming-job-gains-keep-the-fed-on-track-to-push-rates-higher-11675449424<\/a><\/a><\/p>\n

6. <\/span>“Jobs report shows increase of 517,000 in January, crushing estimates, as unemployment rate hit 53-year low” CNBC, 3 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/03\/jobs-report-january-2023-.html<\/a><\/a><\/p>\n

7. <\/span>“Jobs report: A recession sure doesn’t seem imminent.” Slate, 3 Feb. 2023, https:\/\/slate.com\/business\/2023\/02\/jobs-report-hiring-economy-federal-reserve-biden.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":573,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/574"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=574"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/573"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}