US economy adds 467,000 jobs in January, calming Omicron fears
S E E D E D C O N T E N T
Sometimes economic forecasters are too glum for their own good. That sure was the case on Friday with the release of the closely watched monthly US jobs report.
The United States economy added a robust 467,000 jobs in January, the US Department of Labor said on Friday. That was far, far better than most analysts were expecting and quells fears that the fast-spreading Omicron variant of COVID-19 temporarily dented the labour market recovery in the world’s largest economy.
“The labor market started the year off on a stronger-than-expected note defying expectations that the rapid spread of Omicron would lead to a temporary pullback,” said Oxford Economics chief US economist Kathy Bostjancic in a note to clients.
The US jobs market also closed out 2021 on a stronger footing than first thought. Jobs creation for November and December last year were revised up by a combined 709,000.
The nation’s unemployment rate edged up slightly in January to 4 percent after falling to 3.9 percent in December. But it’s not as bad as it seems at first glance because the number of people either working or actively looking for a job – a metric called the labour force participation rate – increased to 62.2 percent, the highest level since the coronavirus pandemic struck in March 2020.
The bump suggests that workers are moving off the sidelines – a development that is likely to cheer business owners who are struggling to fill a near-record number of job openings and have been sweetening benefits and pay packages to lure scarce job seekers.
That enhanced worker bargaining power was on display in average hourly earnings, which climbed 5.7 percent in December compared to the same period a year ago.
But as earnings go up, it further stokes inflation, which is also being fed by ongoing supply-chain disruptions and shortages of raw materials. That double whammy increases input costs for businesses, and they are increasingly passing on at least a portion of that financial burden to consumers.
That’s why the January jobs report falls at a critical juncture in the nation’s economic recovery.
US inflation is running at its hottest level in nearly 40 years and those higher prices erode purchasing power – undercutting the windfall from fatter paycheques.
Soaring costs for essentials like food, gasoline, and rent are also especially hard on low-income households that are forced to shell out a larger share of their financial resources to cover those basic needs.
Finally, too much inflation is bad for consumer confidence, which is bad for the economy. Because when consumers don’t feel good about their financial fortunes and prospects, it saps their spending mojo – and consumer spending drives some two-thirds of US economic growth.
For most of the recovery, the steward of the US economy, the Federal Reserve, has kept interest rates low to encourage jobs creation.
But late last year, with job openings abounding and inflation soaring, the Fed signalled a hard pivot away from job-boosting easy money policies and towards raising borrowing costs to keep a lid on rising prices.
Fed chief Jerome Powell said in January that the Fed will likely start raising interest rates in March. What’s more – he said that there is “quite a bit of room to raise interest rates without threatening the labour market”.
The Fed has a dual mandate to achieve maximum employment while keeping inflation under control. And right now inflation is running far above the Fed’s target rate of 2 percent.
The Fed insists there are no signs yet of a dreaded “wage-price spiral” – that’s when workers keep asking for a raise to keep up with inflation, feeding consumer demand for goods and services, which raises prices further.
If labour force participation continues to increase, it should help calm wage pressures. And Fed policymakers still think inflation will start to moderate later this year.
But the January jobs report is bound to fuel mounting speculation that the Fed could hike rates by as much as half a percentage point in March, or signal a more aggressive tightening cycle ahead.
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As usual, some good, some bad and some ugly ... a partisan playground for Team Negatron and Team Positron.
I’ll take any good news we can get. I’m glad that Americans are defying the China virus and getting our lives back from the branch covidian control freaks. The fear now is the growth is going to require a bigger interest rate increase from the federal reserve.
If your are looking to perpetually spreading fear, you have your own playground for that forum of childish nonsense.
Exactly!
Violence Against Asian Americans: How Do We Support the Children?
Nice to see you are looking at the news.
(But of course that news-- about the "Branch Dravidians"-- is over two years old!)
This violence you refer to happens in urban blue areas and is perpetrated by blue voters if they are registered at all. That crap doesn’t happen in MAGA country
Yes, I looked at the news. About the JHU study showing how utterly useless the lockdowns were. I even seeded that discussion here.
(But of course that news-- about the "Branch Dravidians"-- is over two years old!)
Which does make one wonder-- why would anyone be so interested in such a bizarre cult?
And, in fact, a bizarre cult that is over two years old-- way over 2 years old in fact!
Which does make one wonder-- why would anyone be so interested in such a bizarre cult?
And, in fact, a bizarre cult that is over two years old-- way over 2 years old in fact!
And maybe "its just me"-- but thinking about your comment (to which I am hereby directly replying)-- that old cult is every bit as weird as the MAGA-cult a$$kissers!!!
Don't believe it?
Well, then check this out:
The Branch Davidians (or the General Association of Branch Davidian Seventh-day Adventists) are a religious cult founded in 1955 by Benjamin Roden. They regard themselves as a continuation of the General Association of Davidian Seventh-Day Adventists, established by Victor Houteff in 1935.
Houteff, a Bulgarian immigrant and a Seventh-day Adventist, wrote a series of tracts entitled the "Shepherd's Rod", which called for the reform of the Seventh-day Adventist Church.
After his ideas were rejected by Adventist leaders, Houteff and his followers founded the Davidians and settled on a tract of land on the western outskirts of Waco, Texas, United States, where they built a compound called the Mount Carmel Center and began preparing for the Second Coming.
So, where is the impact of the 300,000 jobs that the companies abolished last month?
The latest employment report from payroll firm ADP showed an alarming loss of 300,000 jobs in January, with over half of those cuts coming from the leisure and hospitality sector.
In case you did not notice, I did not write the article. Is there some rule that I must agree with all within it before seeding?
The sky isn't falling.
That won't stop the boyz 'n galz from crying wolf.
how long will the right be able to fool everyone into believing Bidens economy is a failure ?
How long will significant numbers of Democrats continue to be fooled into thinking we are heading in the wrong direction?
WTF??
(Please see comment # 3. 2, below)
What part didn't you understand?
Not fooling everyone -- in fact they are only fooling the remaining members of that bizarro MAGA-cult!
(Today at 8:32 a.m. EST)
U.S. added 467,000 jobs in January despite omicron variant surge
The data show how the labor market remains strong two years after the pandemic began.
Gee, those Republicans must be out smarting the Dems since so many Dems believe we are headed in the wrong direction.
Al Jazeera? really?
Well does anyone read CNBC anymore?
The estimate is 400,000 jobs lost... With ADP reporting a confirmed 300,000...
So who is telling the truth? A liberal media source or a payroll processor that actually cuts the checks?
Total nonfarm payroll employment rose by 467,000 in January, and the unemployment rate was little changed at 4.0 percent, the U.S. Bureau of Labor Statistics reported today. Employment growth continued in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing.
Well then someone is lying.... the government is saying it went up while a major payroll processor who reports it data says the opposite...
Interesting, who do you believe?
the U.S. Bureau of Labor Statistics
I realize your question was not addressed to me-- but I will also answer it.
Simply stated, I believe the actual job report- - which came out today. (Feb 4th)..That's what I choose to believe.
While you believe the previous estimates which came out (Feb 2nd) before the actual numbers were reported (today.)
Capiche?
Yeah most Liberals take the government for rote, and ignore everything else... Especially when liberals are in power...
I haven't believed anything the BLS has put out since the beginning of the Obama years... and their phoney employment figures...
ADP reported that 301,000 jobs were eliminated by employers Feb 2nd.... no estimate, actual losses... from that they and several others extrapolated the total losses would be up in the 400K range...
Capiche?
And then the government says the opposite... so if we believe the government 768,000 jobs were actually created to cover the 301,000 confirmed losses reported by ADP....
More assumption on your part, which of course makes you sound like an ass.
ADP December employments gains of 807,000 vs the BLS 199,000. Which one do you believe?
Assumption, Nah, experience... the BLS says this is what it is and everyone else is now wrong...
Doesn't matter if they can prove it or not, the GOVERNMENT said it so it has to be true...
That attitude always seems to come up during democrat administrations...
Sounding like an ass? insulting people always seems to come up at the same time as well...
Thank you for proving my point... The BLS said it it is fact... According to you..
I would believe ADP long before I believe BLS...
I didn't prove your point which is one of your regular fall back comments.
Again you keep making assumptions on what I believe and or think on subjects. Unless you're the Great Karnac you're simply blowing smoke.
Carry on.
And we have reached your old standby as well...
Have a great day my friend...
First of all, that a past article!
And second of all, that was the estimate.
(For anyone who is unfamiliar with the difference between "estimated change in employment" and the "actual report of employment numbers"-- the actual ("true facts") number is what is reported-- after the "estimate" which is merely a guess .
Focusing on the previous "estimate" (and perhaps believing it is indicative of a trend when in fact the the actual report is different) leads to incorrect conclusions!
The payroll processor confirmed their figures and the date was 2/2/22... Proven validated data...
So they are just as valid as the governments... If you believe the government...
So how is that explained? the guys that cut the checks confirm that 300,000 jobs were cut by employers, and the government saying 460,000+ jobs were created?
How do you explain that?
Why are you jumping on Al Jazeera? As I noted in #1, there is good, bad and ugly in their reporting.
Because it's truthful? Can't have that now.
I often go to an Italian store when seasonal stuff is available and end up in the crush of fine cooks who only choose from the piles with blemishes knowing full well that they will make the sauce tastier. Some of these posters wouldn't eat toast unless there was an image of their hero on it.