USA job market surges with 517,000 jobs added in January
The American job market continues to thrive, with employers adding 517,000 jobs in January, a significant increase despite the Federal Reserve's efforts to control inflation with higher interest rates. The unemployment rate dropped to a 50-year low of 3.4%.
The latest government report further solidifies the image of a strong labour market, with low unemployment, limited layoffs, and a large number of job openings. Although this is positive for workers, the consistent demand for labour has also driven up wage growth and contributed to inflation.
January's job growth, which surpassed December's increase of 269,000, may call into question whether inflation will continue to decline in the coming months. The Fed has raised its key interest rate eight times since March in an attempt to manage inflation, which reached a 40-year high in the past year but has since slowed.
