U.S. Adds 517,000 Jobs in January as Unemployment Hits 54-Year Low

What happened

Nonfarm payroll increased by 517,000 in January and the unemployment rate fell to 3.4%, according to a report from the U.S. Bureau of Labor Statistics. Job growth significantly exceeded the Dow Jones estimate of 187,000, and the unemployment rate is the lowest on record since May 1969.

So what

The U.S. labor market was strong in 2022, with average monthly gains of 401,000. That trend has continued into 2023, and the January jobs report is especially promising considering how much it exceeded expectations. It also comes at a time when inflation has been falling and the U.S. economy grew by 2.9%, two other positive economic indicators.

"Like $20 bills on the sidewalk and free lunches, falling inflation combined with falling unemployment is supposed to be the stuff of economics fiction," said Julia Pollak, chief economist at ZipRecruiter. She also called the news "almost too good to be true."

For U.S. workers, this is definitely great news. It doesn't necessarily mean the economy has completely recovered from a turbulent 2022. Prices are still high, putting a strain on people's personal finances, and there remains the possibility of a recession this year. However, job growth, low unemployment, and decreasing inflation are steps in the right direction.

Now what

If you're interested in making a career move, it's a fantastic time to go job hunting. Based on the job growth and low unemployment rate, there's quite a bit of demand for workers. Also, many companies do the bulk of their hiring in the first quarter of the year, as that's when new budgets are approved and managers know which roles they can fill.

Even if you have a job, it still doesn't hurt to see what else is available. A new job is often how workers increase their income the most, so it can be a big boost for your bank account. Here are a few ways to maximize your chances of finding a job:

• Polish up your resume. Make sure it accurately reflects your skills and accomplishments.
• Build and maintain professional relationships. Keep in touch with others in your field. LinkedIn is an easy way to do this.
• Set up job alerts. Many top job boards let you set up alerts of jobs that match what you're looking for, so that you don't need to check them yourself regularly.