New | US says jobs rose 257,000 in January; stokes talk of rate hike mid-year
January marked the 11th straight month of job gains above 200,000, the longest streak since 1994
US job growth rose solidly in January and wages rebounded strongly, a show of underlying strength in the economy that puts a mid-year interest rate increase from the Federal Reserve back on the table.
Nonfarm payrolls increased 257,000 last month, the US Labor Department said on Friday. Data for November and December was revised to show a whopping 147,000 more jobs created than previously reported, bolstering views consumers will have enough muscle to carry the economy through rough seas.
At 423,000, November’s payroll gains were the largest since May 2010, when employment was boosted by government hiring for the population count.
While the unemployment rate rose one-tenth of a percentage point to 5.7 per cent, that was because the labour force increased, a sign of confidence in the jobs market.
January marked the 11th straight month of job gains above 200,000, the longest streak since 1994.
Economists polled by Reuters had forecast hiring increasing 234,000 last month and the unemployment rate holding steady at 5.6 per cent.
The continued improvement in the labour market comes despite the economy slowing. Sputtering growth overseas and lower oil prices have weighed on exports and business investment.
