The US created 517,000 jobs in January and unemployment fell to 3.4%, the lowest level in 53 years.

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This was confirmed by the Department of Labor this Friday in its monthly report. The figures far exceeded expectations

The US added 517,000 jobs in January and unemployment fell to 3.4%, the lowest level in 53 years. os

Image of a job fair sign on 5th Avenue in Manhattan, New York, United States. September 3, 2021. REUTERS/Andrew Kelly/File

US job growth far exceeded expectations in the first month of the year, with < b>517,000 new jobs, while the labor market continued to advance at a good pace thanks to the tightening of the monetary policy of the Federal Reserve to combat inflation.

The information was released this Friday by the Department of Labor in its monthly employment report for January.

The unemployment rate dropped from 3.5% to 3.4%, the lowest since 1969.

Economists polled by Bloomberg had expected an increase of 185,000 jobs.< /p>

The US added 517,000 jobs in January and unemployment fell to 3.4%, the lowest level in 53 years

A hiring sign is seen at a cafe as the US Department of Labor released its July employment report, in Manhattan, New York, USA. August 5, 2022. REUTERS/Andrew Kelly/File

This Friday's government report adds to the picture of a resilient labor market, with low unemployment , relatively few layoffs, and many job offers, even as most economists predict a recession is imminent. Although good for workers, the constant demand for labor by employers has also contributed to accelerating thegrowth in wages and higher inflation.

January job growth, which far exceeded December's 269,000 job gains, could lead to < b>doubts about whether inflationary pressures will continue to decrease in the coming months. The Federal Reserve has raised its official interest rate eight times since March to try to contain inflation, which last year hit a four-decade high but has slowed since.

Businesses are still looking for more workers and are holding on strong to those who have. Aside from some high-profile layoffs at big tech companies like Microsoft, Google, Amazon and others, most workers enjoy an unusual level of job security, even in a time when many economists predict a recession is approaching.

The US added 517,000 jobs in January and unemployment fell to 3.4%, the lowest level in 53 years. os

People line up outside a job center for in-person appointments in Louisville, United States. April 15, 2021. REUTERS/Amira Karaoud/File

During all of 2022, the economy had created an average of 375,000 jobs per month. A pace vigorous enough to have contributed to the painful inflation Americans have suffered, the worst in the last 40 years. A tight job market tends to put upward pressure on wages, which, in turn, fuels inflation.

The Federal Reserve, hoping to cool the job market and the economy – and consequently inflation – has steadily raised interest rates, most recently on Wednesday. Year-on-year consumer price inflation has declined steadily since peaking at 9.1% in June. But at 6.5% in December, inflation remains well above the 2% target set by the Federal Reserve, which is why policy makers in the central bank have reiterated their intention to continue raising interest rates for at least a few more months.

The Federal Reserve's goal is to achieve a “soft landing”, that is, a decline in the economy that is sufficient to control high inflation without triggering a recession. Policy makers hope that employers can stem wage increases and inflationary pressures by reducing job offers, but not necessarily by laying off many employees.

(With information from AP )

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