Non-Agricultural Employment Surges with Addition of 353,000 New Jobs

In January, the economy gained 353,000 jobs, maintaining an unemployment rate of 3.7%, while demonstrating resilience with a 0.6% increase in average hourly earnings.  

Highlights

• Nonfarm employment increases by 353,000 in January.
• Unemployment rate stays steady at 3.7 percent.
• Average hourly earnings rise, indicating economic strength.  

Employment Situation in January 2024

In January 2024, there was a substantial increase in nonfarm payroll employment, amounting to 353,000 new jobs. However, the unemployment rate held steady at 3.7 percent. Job growth was notable in professional and business services, health care, retail trade, and social assistance, while certain industries saw a decline.

Consistent Unemployment Rate

The unemployment rate remained constant at 3.7 percent in January, continuing a three-month trend. The number of unemployed individuals remained relatively stable at approximately 6.1 million, with minimal changes seen across different worker groups.

Sector-Specific Employment Trends

Industries such as professional and business services, health care, retail trade, and social assistance observed notable job growth. On the other hand, the mining, quarrying, and oil and gas extraction industries experienced a decline. Manufacturing and government employment showed slight increases.

Hourly Earnings and Workweek

Average hourly earnings for all private nonfarm employees increased to $34.55, representing a 4.5 percent rise over the past year. However, the average workweek duration decreased slightly to 34.1 hours.

Short-Term Market Forecast

With robust job growth in key sectors and a steady unemployment rate, the outlook is cautiously optimistic. The consistent increase in average hourly earnings indicates a resilient labor market, with a bullish short-term forecast reflecting ongoing recovery and growth in various sectors.