2018 if off to a solid start, with the unemployment rate holding steady at 4.1 percent.
3 Things You Should Know From the January 2018 Jobs Report
It looks like we’re off to a solid start. The U.S. economy added a better-than-expected 200,000 jobs in January — which marks the 88th straight month of job growth, the longest streak on record. The unemployment rate held steady at 4.1 percent, its lowest level since December 2000, for the fourth straight month.
Here are some highlights from the report.
1. Wage growth is FINALLY picking up. After a year stuck at 2.5 percent growth, wages are finally beginning to increase at a faster-than-expected pace.
According to the Wall Street Journal: “Average hourly earnings rose 2.9% in January from a year earlier, the strongest gain since 2009 and above the 2.6% gain economists had forecast…The data signals that a tight U.S. labor market is finally beginning to filter through into higher pay for workers. Many investors believe wage growth will propel broader measures of inflation growth by allowing companies to raise prices.”
According to the New York Times: “‘I think this is the year that we will start to see some wage pressure,’ said Dan North, chief economist at Euler Hermes North America. Mr. North noted that more people were quitting their jobs, a sign of confidence in the economy, and that more companies were reporting having trouble finding workers, which should eventually lead them to raise pay.”