CNBC (02/03/2023) Cox, Jeff

KEY POINTS

• The January jobs report showed nonfarm payrolls increased by 517,000, far higher than the 187,000 market estimate.
• The unemployment rate fell to 3.4% versus the estimate for 3.6%. That is the lowest jobless level since May 1969.
• Leisure and hospitality added 128,000 jobs to lead all sectors. Other significant gainers were professional and business services (82,000), government (74,000) and health care (58,000).

The employment picture started off 2023 on a stunningly strong note, with nonfarm payrolls posting their biggest gain since July 2022.

Nonfarm payrolls increased by 517,000 for January, above the Dow Jones estimate of 187,000 and December’s gain of 260,000, according to a Labor Department report Friday.

“It was a phenomenal report,” said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute. “This brings into question how we’re able to see that level of job growth despite some of the other rumblings in the economy. The reality is it shows there’s still a lot of pent-up demand for workers were companies have really struggled to staff appropriately.”

The unemployment rate fell to 3.4% versus the estimate for 3.6%. That is the lowest jobless level since May 1969. The labor force participation rate edged higher to 62.4%.

This article originally appeared on cnbc.com. Use this link to see the full article: Jobs report shows increase of 517,000 in January, crushing estimates, as unemployment rate hit 53-year low