New jobs report shows drop in unemployment
(CNN/KYMA, KECY) - Looks like there's no cool-down in the labor market, at least for the foreseeable future.
The U.S. job market is blowing past expectations by adding more than half a million jobs in January.
Plus, the unemployment rate hit a staggering 53-year-low.
The shocking new jobs report posted by the Bureau of Labor Statistics shows a stunning 517,000 new jobs added to the U.S. economy in January.
"Today, I'm happy to report on the state of our union and the state of our economy is strong," said President Joe Biden.
The report is almost three times what forecasters were predicting, according to consensus estimates.
"People feeling good about the job market is a positive sign, and we need to continue to build on that," said Labor Secretary Marty Walsh.
The unemployment rate has since fallen to 3.4%.
While the tech-industry saw recent cuts, job gains hit in nearly every other sector.
Leading the pack, leisure and hospitality, as the U.S. continues to rebound from the COVID-19 pandemic.
"Manufacturing is rebounding at a faster rate than the last 40 years," said President Biden.
A hot labor market doesn't necessarily mean we're not in a recession.
But it also may complicate the Federal Reserve's efforts to slow down the economy in order to combat inflation.
"It is a month by month approach to see how we can continue to bring the inflationary pressures down, and allow people to get into the good paying jobs," said Walsh.
As the labor market refuses to quit, Wall Street fears a still-hot economy, which could mean more aggressive interest rate hikes on the way from the federal government.
