US adds 353K jobs in January, soaring past expectations

The U.S. economy added 353,000 jobs in January, pushing the unemployment rate to 3.7%, according to data released Friday by the Labor Department.

January’s employment report far exceeded the Wall Street Journal’s forecast of an increase in jobs of 185,000 jobs and an unemployment rate of 3.8%.

“The labor market is a small driver of that potential and remained strong in January. 353,000 net new jobs is a strong start to the year and an already impressive 2023 monthly That’s more than the average employment increase of 255,000 people,” said John Lear. Chief Economist at Morning Consult.

The first outlook on the 2024 labor market comes as Biden faces a possible rematch with former President Trump, who appears to be closing in on the Republican presidential nomination after winning last month’s Iowa caucuses and New Hampshire primary. The move comes as the president strengthens his economic policies.

Mr. Biden and Mr. Trump have been discussing economic performance and the state of the economy for weeks.

Consumer confidence in the economy has reached its highest level in more than two years, but Americans are unconvinced by Biden’s handling of the economy, according to a Gallup/Conference Board poll released this week.

Only 28% of Americans rate the economy as “excellent” or “good,” according to a Pew Research Center survey of 5,140 adults released January 16-21. Ta.

That’s a 9% increase from April 2023, driven primarily by Democrats and Democratic-leaning independent voters, but well below pre-pandemic levels. The share of Americans who rated the economy as “excellent” or “good” went from 57% in January 2020, when Trump was president, to April 2020, when much of the economy was shut down due to the pandemic. That rating dropped to 23%.

According to a Pew Research Center survey, Biden’s overall approval rating is -33%, unchanged from December. Trump currently has a 1.6 point lead in a hypothetical showdown with Biden in November, according to a Thursday afternoon average of Decision Desk Headquarters/The Hill polls.

Inflation and high prices remain top concerns for many voters. The Fed on Wednesday kept interest rates unchanged in a range of 5.25% to 5.5%, pending “further confidence” that inflation is under control.

“I think it’s unlikely that the committee will reach a level of confidence by the time it meets in March,” Fed Chairman Jerome Powell said at a press conference after the announcement.

A surprisingly strong jobs report is likely to avert a March rate cut, raising questions about how quickly the Fed will actually cut rates.

“The combination of strong job growth, consistent wage growth, and falling inflation makes for a positive consumer outlook for the first half of this year. This is very encouraging and suggests that economic activity will moderate. “It doesn’t seem very appropriate to cut rates before we see signs,” Lehr said.

Updated at 9:23 a.m. ET