U.S. Economy Bucks Recession As Thousands Of New Jobs Added

The nation’s employers delivered a stunning burst of hiring to begin 2024, adding 353,000 jobs in January, marking the latest sign of the economy’s resilience despite the highest interest rates in two decades, reported Paul Wiseman for the Associated Press (AP).

The latest gains underscore employers’ readiness to continue hiring to meet steady consumer spending.

Friday’s government report revealed that last month’s job gain – approximately double what economists had predicted – surpassed December's gain of 333,000, a figure that was itself sharply revised upwards.

The unemployment rate held steady at 3.7%, just above a half-century low. Wages also surged unexpectedly fast in January.

Average hourly pay rose by a significant 0.6% from December, marking the fastest monthly gain in nearly two years, and by 4.5% from January 2023.

The robust hiring and wage growth could complicate or delay the Federal Reserve’s intention to commence interest rate cuts later this year, as reported by Anne D’Innocenzio and Christopher Rugaber for AP.

The latest gains underscore employers’ readiness to continue hiring to meet steady consumer spending.

This comes as the intensifying presidential campaign largely pivots on assessments of President Joe Biden’s economic management. Public polls indicate widespread dissatisfaction, primarily because, although inflation has significantly slowed, most prices remain well above pre-pandemic levels.

However, some recent surveys show a gradual improvement in public approval.

“America’s economy is the strongest in the world,” Biden stated on Friday. “Today, we saw more proof, with another month of strong wage gains and employment gains of over 350,000 in January, continuing the strong growth from last year.”

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