The nation’s employers delivered a stunning burst of hiring to begin 2024, adding 353,000 jobs in January in the latest sign of the economy’s continuing ability to shrug off the highest interest rates in two decades.
The nation’s employers delivered a stunning burst of hiring to begin 2024, adding 353,000 jobs in January in the latest sign of the economy’s continuing ability to shrug off the highest interest rates in two decades.
Friday’s government report showed that last month’s job gain — roughly twice what economists had predicted — topped the December gain of 333,000, a figure that was itself revised sharply higher. The unemployment rate stayed at 3.7%, just above a half-century low.
Wages rose unexpectedly fast in January, too. Average hourly pay climbed a sharp 0.6% from December, the fastest monthly gain in nearly two years, and 4.5% from January 2023. The strong hiring and wage growth could complicate or delay the Federal Reserve’s intention to start cutting interest rates later this year.
The latest gains showcased employers’ willingness to keep hiring to meet steady consumer spending. It comes as the intensifying presidential campaign is pivoting in no small part on views of President Joe Biden’s economic stewardship. Public polls show widespread dissatisfaction largely because even though inflation has sharply slowed, most prices remain well above pre-pandemic levels. Some recent surveys, though, show public approval gradually improving.
This week, the Fed took note of the economy’s durability, with Chair Jerome Powell saying “the economy is performing well, the labor market remains strong.” The central bank made clear that while it’s nearing a long-awaited shift toward cutting interest rates, it’s in no hurry to do so.
The details in Friday’s jobs report pointed to broad hiring gains across the economy. Professional and business services, a category that includes managers and technical workers, added 74,000 jobs. Healthcare companies added 70,000, retailers 45,000, governments at all levels 36,000 and manufacturers 23,000.
