US Adds 517,000 Jobs In January, Unemployment at 3.4%

The U.S. economy added 517,000 jobs in January, beating estimates of 187,000 jobs.

This number represents a dip from December, which saw an increase of 260,000 jobs and November, which saw an increase of 290,000 jobs, according to a newly revised figure from the Bureau of Labor Statistics on Friday. As inflation soars, the job market has stayed tight as wages increase across various industries — even as layoffs in tech and other sectors continue to increase — as the Federal Reserve looks to curb demand and inflation.

The unemployment rate in December was little changed from November at 3.4%, with 5.7 milllion people unemployed. In November, the unemployment rate was 3.5%.

Notable job gains were present across leisure and hospitality, professional and business services, and health care.

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Retail employment edged up in January by 30,000 jobs. Job gains were present across general merchandise retailers and in furniture, home furnishings, electronics and appliance retailers. This was offset by a decline in health and personal care retailers. Throughout 2022, job growth in retail trade averaged 7,000 per month.

Average hourly earnings rose by 10 cents, or 0.3%, to $33.03 in January. Over the past 12 months, average hourly earnings have increased by 4.4%. Meanwhile, inflation continues to soar while showing some signs of improvement. Consumer prices rose by 6.5% in December compared to the prior year, marking the smallest 12-month increase since the period ending in October 2021 and a slowdown from November’s 7.1% and October’s 7.7% year over year growth.

The strong labor market and rising wages have bolstered consumer spending overall amid inflation. Total sales in 2022 were up 9.2% from 2021, according to data from the U.S. Census Bureau.