February 3rd, 2023 by WCBC Radio
America’s employers added a robust 517,000 jobs in January, a surprisingly strong gain in the face of the Federal Reserve’s aggressive drive to slow growth and tame inflation with higher interest rates.
The unemployment rate dipped to 3.4%, a new half-century low.
Friday’s government report added to the picture of a resilient labor market, with low unemployment, relatively few layoffs and many job openings even as most economists foresee a recession nearing. Though good for workers, employers’ steady demand for labor has also helped accelerate wage growth and contributed to high inflation.
January’s job growth, which far exceeded December’s 269,000 gain, could raise doubts about whether inflation pressures will ease further in the months ahead. The Fed has raised its key rate eight times since March to try to contain inflation, which hit a four-decade high last year but has slowed since then.
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