The government’s report Friday also drastically revised up its estimate of job gains for November and December by a combined 709,000. It also said the unemployment rate ticked up last month from 3.9% to a still-low 4%.
The strong hiring gain for January, which was unexpected, demonstrates the eagerness of many employers to hire even as the pandemic maintains its grip on the economy. Businesses appear to have seen the omicron wave as having, at most, a temporary impact on the economy and remain confident about longer-term growth. …
The surprisingly healthy hiring figures will likely give the Federal Reserve leeway to raise interest rates more quickly to cool inflation. The Fed has already indicated that it will begin raising rates in March, and it could do so again at its next meeting in May.