The U.S. economy added 130,000 jobs in January, beating market expectations and signaling an improvement in the American job market. This figure contrasts with a series of recent pessimistic reports. According to data released today by the Bureau of Labor Statistics, the number was nearly double the expected 68,000 jobs, according to a Bloomberg survey of economists, and significantly higher than the revised-down figure of 48,000 jobs added in the prior month. The unemployment rate edged down slightly to 4.3%. This unexpectedly positive start to the year surprised the markets, especially after recent reports indicated a weak job market, with rising layoff rates, fewer available job openings, and an increase in unemployment benefit claims. These data will bolster the argument of outgoing Federal Reserve Chair Jerome Powell that the labor market is 'showing signs of stabilization,' after the central bank halted its rate-cutting campaign last month.
