The U.S. economy added 225,000 jobs in January, according to the Bureau of Labor Statistics, far surpassing expectations from leading financial experts.
Ahead of this morning’s report, most firms projected between 150,000-190,000 jobs added with a lingering unemployment rate and modest wage growth.
January Jobs: Goldman Sachs forecast is at 190k, JPMorgan at 150K with a cautionary note about upside risk. If that plays out, really a great showing for an expansion in its 11th year. And 3%-ish wage growth isn't surprising given so-so productivity.
— James Pethokoukis (@JimPethokoukis) February 7, 2020
However, the growth of 225,000 jobs indicates the booming economy isn’t quite done growing, despite earlier worries that it couldn’t last. Revisions of previous months show an average of 211,000 jobs over the last three months, with the unemployment rate holding fairly steady and participation rate increasing. Via The Wall Street Journal:
Wages increased 3.1% from a year earlier, a touch higher than December’s annual rise of 3%.
Economists surveyed by The Wall Street Journal had forecast job growth of 158,000, an unemployment rate of 3.5% and year-over-year wage growth of 3.0%.
January’s robust payroll gain points to a continued healthy labor market in a U.S. economic expansion now in its 11th year. Over the past three months, the U.S. economy added an average 211,000 jobs. Job growth was revised higher in the last four months of 2019.
In an election year, all signs point to a strong re-election platform for President Donald Trump, as well.
This is another good report for Trump 2020 (and workers!). Team Trump will dismiss weak, sub-2% GDP growth on Boeing and coronavirus. Not hard to run for reelection on gobs of jobs.
— James Pethokoukis (@JimPethokoukis) February 7, 2020
If this type of growth continues to happen, it will be much more difficult for Democrats to say that the lower and middle class are not doing so well under Trump’s administration – especially in minority communities, which are seeing record-low unemployment.
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