Despite the disruption to consumer-facing businesses caused by a surge in COVID-19 cases, the US economy added much more jobs than projected in January, showing underlying strength that should prolong the upswing as the Federal Reserve begins to raise interest rates.
A good start of 2022
The January jobs report is the first to show the Omicron variant’s full consequences. By the time the December jobs report survey period rolled around, the highly contagious variety found in the United States in late November had only just begun to spread. As a result, new daily COVID-19 cases in the United States had reached an all-time high around the January survey period in the middle of the month, Yahoo Finance reported.
Nonetheless, employment growth has been significantly stronger than predicted at the start of the year. Furthermore, payroll increases for December were dramatically revised upwards, indicating that the labor market is picking up steam moving into the new year. The Labor Department announced on Friday that non-farm payrolls climbed by 510,000 in December, a considerable increase from the previous month’s 199,000.
More jobs were created
On Friday, the Labor Department released its closely watched employment report, which revealed that 709,000 more jobs were added in November and December than had been projected. Last month, wage growth quickened, and the labor pool grew. The positive news put an end to days of worry among economists and White House officials, who had been hurriedly trying to prepare the country for a low payroll number.
According to Reuters, Chris Low, chief economist at FHN Financial in New York said that this is a great jobs report. Today’s chances of containing inflation without a recession appear stronger than yesterday’s. In the 12 months leading up to March 2021, the government claimed that 374,000 more employment were generated than previously recorded. President Joe Biden’s first year in office ended in January, with 6.6 million new jobs created. Despite the robust economy, Biden’s popularity is waning as inflation rises.
Read More About: