'Remarkable, Resilient, And Robust': Economists React To January Jobs Report On X
Nonfarm payroll employment rose by 353,000 jobs in January, nearly double consensus estimates, the Bureau of Labor Statistics reported Friday.
The unemployment rate remains at 3.7%.
The sector with the most jobs gained in January was professional and business services, which added 74,000 jobs after averaging a monthly increase of 14,000 jobs in 2023. The healthcare industry, which averaged a monthly increase of 58,000 jobs per month for the year, added another 70,000 jobs in January.
Retail trade employment increased by 45,000 jobs in January. Other industries closely tied to commercial real estate, including construction and leisure and hospitality, showed little change.
Here's how economists and others reacted to the jobs report with posts on X, formerly Twitter.
JUST IN: The US economy added a blockbuster 353,000 jobs in January, far exceeding expectations of 180,000. This is a really healthy economy. (December jobs revised up to 333,000)
— Heather Long (@byHeatherLong) February 2, 2024
Unemployment rate: 3.7%
Wage growth: 4.5% in past year —>far ahead of 3.4% inflation #jobs
WOW
— Julia Coronado (@jc_econ) February 2, 2024
The labor market finds your lack of faith disturbing
— Martha Gimbel (@marthagimbel) February 2, 2024
Okay, so maybe this labor market isn't weakening so much!
— Nick Bunker (@nick_bunker) February 2, 2024
353,000 jobs were added in January. Strong hiring across the board
— Heather Long (@byHeatherLong) February 2, 2024
Biz +74,000
Healthcare +70,000
Retail +45,000
Gov't +36,000
Social aid +30,000
Manufacturing +23,000
Information +15,000 (Film industry +12,000)
Construction +11,000
Hospitality +11,000
Warehouse +5,500
Annualized rate of wage growth over the last three months is 5.4 percent, wages are now substantially outpacing inflation
— Dean Baker (@DeanBaker13) February 2, 2024
We have continued to grow jobs at a record pace while the Fed's preferred inflation gauge was under 2% for second half of 2023.
— Arin Dube (@arindube) February 2, 2024
It turns out that we didn't need to slow anything down to lower inflation--because the inflation was never about an overheated labor market.
Head-scratcher. That’s the January jobs report. Payroll jobs surged in the month, and previous months were revised up, but hours worked declined big as did household employment. Measurement problems are clearly at play. But abstracting from all the statistical noise, the signal…
— Mark Zandi (@Markzandi) February 2, 2024
Sizzling January employment & wage gains will keep the Fed on hold until June. We now expect only three rate cuts this year. Labor hoarding helped drive January gains.
— Diane Swonk (@DianeSwonk) February 2, 2024
Unemployment has now been below 4% for 24 consecutive months, the longest span since the height of the…
I will say this ONCE: this incredibly good news does NOT let the Fed off the hook from cutting.
— Claudia Sahm (@Claudia_Sahm) February 2, 2024
Remember, 2023? Inflation fell fast. And what else? Growth, jobs, and wages stayed strong.
The Fed's mandate is inflation at 2% and unemployment low. Then it should be totally out.
"The 353,000 surge in non-farm payrolls in January illustrates why the Fed is apparently in no rush to start cutting interest rates but, even if that strength is sustained, the rapid decline in inflation should still be enough on its own to warrant a gradual easing of policy…
— James Pethokoukis ⏩️⤴️ (@JimPethokoukis) February 2, 2024
These are great jobs numbers obviously. But given the nature of this cycle, if you wait for the labor market to be really weak before you cut it will be too late.
— Adam Ozimek (@ModeledBehavior) February 2, 2024
Best consumer confidence expectations since July 2021 https://t.co/G3irtTiwye
— Carl Quintanilla (@carlquintanilla) February 2, 2024
The current unemployment rate is lower than it was in **every single month** in the 1970s, 80s, 90s, 00s through 2018.
— Eddy Elfenbein (@EddyElfenbein) February 2, 2024
"Remarkable, resilient, and robust. There is simply no other way to describe the sustained strength in the U.S. labor market that has resulted in an American unemployment rate below 4% for twenty-four consecutive months for the first time since 1967." @joebrusuelas
— James Pethokoukis ⏩️⤴️ (@JimPethokoukis) February 2, 2024
