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    January Jobs Report: 517,000 Jobs Added and Unemployment Falls to Lowest Level Since 1969

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    The Bureau of Labor Statistics' most recent report revealed that employers added 517,000 jobs in January, and the unemployment rate dropped to 3.4%, its lowest since 1969.[0] Gains were seen in various sectors, indicating job growth was widespread.[1] In other economic news, job openings increased in December and weekly unemployment claims remain low.[2] In the fourth quarter of 2022, the US economy experienced an unexpected surge in growth.[2]

    The Bureau of Labor Statistics' January jobs report revealed a total nonfarm payrolls increase of 517,000, substantially higher than the 401,000 average monthly gain observed in 2022 and the FactSet consensus prediction of about 190,000 for January.[3] Hourly wages increased by an average of 0.3%, the same as the monthly rise in December.[4] In January, wages increased by 4.4% on a yearly basis, a slightly lower rate compared to the 4.6% from December. The percentage of people in the labor force increased to 62.4%.[5]

    The likelihood that the Federal Reserve will increase the interest rate by a quarter percentage point at their March meeting has risen to 94.5%, according to information from CME Group, as traders have increased their wagers.[6] It is anticipated that the Federal Reserve will raise the benchmark funds rate to a range of 5%-5.25% in either May or June.

    Most economists, even those who had denied a recession was near, were stunned by Friday's jobs report strength.[7] There are approximately 11 million job openings, representing a ratio of 1.9 job openings per person looking for employment.[8]

    Federal Reserve Board Chairman Jerome Powell spoke at a news conference on February 01, 2023 in Washington, DC.[9] Kevin Dietsch/Getty Images is the photographer of[5] His comments followed the Fed’s announcement of a .25% increase to its inter-bank lending rate, the eighth consecutive rate hike going back to March of last year and a continuation of the Fed’s most aggressive strategy for decades.[10] The benchmark rate has increased from close to 0% in the beginning of 2020 to 4.5% to 4.75%, which is the highest it has been since 2007.[10]

    An even more surprising factor of the January jobs report was the lack of wage pressures. Caldwell reported that wages have increased at an average annual rate of 4.6% over the last three months.

    0. “Jobs growth surges in US despite slowdown fears” BBC, 3 Feb. 2023, https://www.bbc.com/news/business-64514466

    1. “Gold prices taking a hit after U.S. economy added 517K jobs in January” Kitco NEWS, 3 Feb. 2023, https://www.kitco.com/news/2023-02-03/gold-prices-taking-a-hit-after-U-S-economy-added-517K-jobs-in-January.html

    2. “How is the economy doing? Kind of good, actually.” Vox.com, 8 Feb. 2023, https://www.vox.com/the-goods/2023/2/3/23584939/jobs-report-economy-federal-reserve-inflation-recession-jay-powell

    3. “Hot January Jobs Report Presents Puzzle for Investors” Morningstar, 3 Feb. 2023, https://www.morningstar.com/articles/1135270/hot-january-jobs-report-presents-puzzle-for-investors

    4. “Jobs Report: Hot Hiring, Lower Jobless Rate Lift Fed Rate-Hike Odds; S&P 500 Falls” Investor's Business Daily, 3 Feb. 2023, https://www.investors.com/news/economy/jobs-report-hiring-surges-as-jobless-rate-falls-sp-500-futures-lower/

    5. “Jobs report: U.S. economy adds 517,000 jobs in January, unemployment rate falls to 3.4% as labor market stuns” Yahoo News, 3 Feb. 2023, https://news.yahoo.com/january-jobs-report-labor-market-economy-february-3-2023-125436675.html

    6. “Tesla Hikes Model Y Prices As U.S. Changes $7500 Tax Credit Rules” Rockdale Newton Citizen, 6 Feb. 2023, https://www.rockdalenewtoncitizen.com/arena/tesla-hikes-model-y-prices-as-u-s-changes-7-500-tax-credit-rules/article_51c0648d-6a50-5fb0-b657-4682b4bd5e58.html

    7. “Now hiring: Despite layoff headlines, there are still plenty of jobs in this economy” NBC News, 3 Feb. 2023, https://www.nbcnews.com/business/economy/now-hiring-where-are-the-jobs-right-now-economy-rcna68783

    8. “Why Forecasts Fail: 4 Must-Have Lessons For Every Investor” HerMoney, 7 Feb. 2023, https://hermoney.com/earn/job-hunting/how-did-forecasters-get-it-so-wrong-what-investors-need-to-take-away-from-the-january-jobs-report/

    9. “Why did we get a monster jobs report if the economy is slowing?” CNN, 4 Feb. 2023, https://www.cnn.com/2023/02/04/economy/strong-jobs-report-weakening-economy-analysis/index.html

    10. “Jobs report blows by expectations, ratchets up inflation fight” Deseret News, 3 Feb. 2023, https://www.deseret.com/2023/2/3/23584433/jobs-report-exceeeds-expectations-amid-inflation-lowest-unemployment

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