Labor Market Added 517,000 Jobs In January—Unemployment Rate Falls To 54-Year Low Of 3.4%

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Despite waves of layoffs hitting some of the nation’s largest employers, the unemployment rate unexpectedly fell, and the labor market added back more jobs than expected in January.

Despite waves of layoffs hitting some of the nation’s largest employers, the unemployment rate unexpectedly fell, and the labor market added back more jobs than expected in January—adding to signs the economy may not be slowing down enough enough for the Federal Reserve to back away from its aggressive campaign to tame rising prices.

"While we have seen many reported layoffs in the tech industry, there are other segments that are continuing to thrive," Bill Armstrong, president of recruiting at Safeguard Global, said in an email Friday, pointing out the healthcare and hospitality industries are particularly healthy, adding 58,000 and 128,000 jobs in January, respectively.

Job growth in January was also fairly widespread, with employment also increasing in the government, and professional and business services. Despite the robust gains elsewhere in the report, wages grew by about 10 cents, or 0.3%, to $33.03 in January, falling in line with economist expectations. The report comes two days after additional data signaling the labor market remains tight, with job openings in December

 

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