January’s jobs report exceeded expectations in several areas, with 353,000 jobs added, compared with the 187,000 expected, and wage growth higher than expected as well. Unemployment stayed around 3.7%, marking the longest stretch below 4% since the late 60s.
The pace of growth may be more sustainable than what was seen in recent years, some experts say. “The labor market is no longer a Ferrari just flying down the street,” Nick Bunker, director of North American economic research at the Indeed Hiring Lab, said, “but maybe it’s a car that can actually make a cross-country trip.”
Meanwhile, workers are at relatively low risks of losing their jobs but those that do might face a longer wait to get hired and may have to be willing to compromise on position and pay in order to secure another job.
Workers no longer have the upper hand, the report shows, and raises are not as big as in 2021 or 2022. However, with inflation dropping, their wages will go farther.
