DStv Channel 403 Tuesday, 24 December 2024

US jobs market defies expectations of January slowdown

NEW YORK - The US labour market smashed expectations last month in a surprise hiring pick-up, with a resilient jobs market likely good news for President Joe Biden in election year.

The world's biggest economy added 353,000 jobs in January, after December's figure was significantly revised upwards to 333,000, said the Department of Labor.

The unemployment rate held steady at 3.7 percent for a third straight month -- hovering under 4.0 percent for two years now -- even though analysts cautioned the report also contained signs of weakness.

"It's great news for working families that wages, wealth, and jobs are higher now than before the pandemic, and I won't stop fighting to lower costs," Biden said in a statement.

Despite positive data in recent months, the president has struggled to persuade voters over his handling of the economy as he campaigns for a second term in the White House.

Over the past year, a solid jobs market has helped to support consumer spending and in turn economic growth even as borrowing costs rose. The strong start this year signals that the labor market is set to continue bolstering the economy.

But the picture may be more complicated for the Federal Reserve, which has been working to lower stubborn inflation by lifting interest rates to ease demand.

Even though Fed Chair Jerome Powell told reporters this week that strong growth and a robust jobs market is not necessarily a problem for policymakers, persistently hot labor conditions muddle their battle against inflation.

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