US economy adds 353,000 jobs in January – trouncing expectations in surprise boom to kick off 2024

The US economy added 353,000 jobs in January – a much stronger-than-expected gain from 2024.

Surprising job growth in January exceeded economists’ expectations. According to FactSet, growth was estimated at 176,500 last month.

The unemployment rate also remained at 3.7 percent, according to Bureau of Labor Statistics data released Friday, defying expectations of a rise to 3.8 percent.

This marks the 24th consecutive month that the unemployment rate has remained below 4 percent – ​​the nation’s longest stretch since the 1960s.

This is despite headlines being dominated by layoffs in recent weeks – particularly in the technology, media and transport sectors.

While the report shows the strength of the US economy, it also raises questions about how quickly the Federal Reserve could start cutting interest rates.

It comes just days after Fed Chairman Jerome Powell said he is encouraged about the economy and downward movement in inflation, but warned there is still “way to go.”

The Fed voted to keep interest rates steady for the fourth consecutive meeting on Wednesday, keeping interest rates between 5.25 and 5.5 percent.

Powell also ruled out the chance of an expected rate cut in March.

Rate traders now predict a 90 percent chance of a cut at the central bank meeting in May, the report said. CME FedWatch tool.

This is a breaking news story. Updates are coming.