Connect with us

Hi, what are you looking for?

Editor’s Pick

U.S. economy added 353,000 jobs in January, much better than expected

Job growth posted a surprise increase in January, demonstrating again that the U.S. labor market is solid and poised to support broader economic growth.

Nonfarm payrolls expanded by 353,000 for the month, much better than the Dow Jones estimate for 185,000, the Labor Department’s Bureau of Labor Statistics reported Friday. The unemployment rate held at 3.7%, against the estimate for 3.8%.

Wage growth also showed strength, as average hourly earnings increased 0.6%, double the monthly estimate. On a year-over-year basis, wages jumped 4.5%, well above the 4.1% forecast. The wage gains came amid a decline in average hours worked, down to 34.1, or 0.2 hour lower.

Job growth was widespread on the month, led by professional and business services with 74,000. Other significant contributors included health care (70,000), retail trade (45,000), government (36,000), social assistance (30,000) and manufacturing (23,000).

The report also indicated that December’s job gains were much better than originally reported. The month posted a gain of 333,000, which was an upwards revision of 117,000 from the initial estimate. November also was revised higher, to 182,000, or 9,000 higher than the last estimate.

While the report demonstrated the resilience of the U.S. economy, it also could raise questions about how soon the Federal Reserve will be able to lower interest rates.

The January payrolls count comes with economists and policymakers closely watching employment figures for direction on the larger economy. Some high-profile layoffs recently have raised questions about the durability of what has been a powerful trend in hiring.

However, broader layoff numbers, such as the Labor Department’s report on initial jobless claims, show companies hesitant to part with workers in such a tight labor market.

Gross domestic product growth also has defied expectations.

The fourth quarter saw GDP increase at a strong 3.3% annualized pace, closing out a year in which the economy defied widespread predictions for a recession. Growth came even as the Federal Reserve further raised interest rates in its quest to bring down inflation.

The Atlanta Fed’s GDPNow tracker is pointing towards a 4.2% gain in the first quarter of 2024, albeit with limited data of where things are heading for the first three months of the year.

The economic, employment and inflation dynamics make for a complicated picture as the Fed seeks to ease monetary policy. Earlier this week, the Fed again held benchmark short-term borrowing costs steady and indicated that rate cuts could be ahead but not until inflation shows further signs of cooling.

Chair Jerome Powell indicated in his post-meeting news conference that the central bank does not have a “growth mandate” and said central bankers remain concerned about the impact that high inflation is having on consumers, particularly those on the lower end of the income scale.

This post appeared first on NBC NEWS

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

As Bitcoin approaches a monumental milestone, speculation around its price trajectory intensifies, with many wondering if reaching $100,000 in March is within the realm...

Economy

A just-launched meme token called FrogWifHat (FWIW) is generating a significant buzz within web3 circles as it attempts to emulate the viral success of...

Economy

Dogecoin, the leading cryptocurrency in the meme coin market, has captivated investors, especially those driven by the fear of missing out (FOMO), with a...

Economy

Crypto exchange Binance unveiled a new promotion on February 28 for its VIP Invitation Program that is set to target traditional asset traders. In...

Economy

Japan is a global leader in compliant crypto payment services, according to a report published today by independent finance news outlet FinanceFeeds. The conclusion...

Economy

The DogWifHat price has erupted by 41% in the past 24 hours, surging to $0.7766 as the crypto market enjoys a 3.5% gain today....

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.