ORLANDO, Fla. – The January employment report from the U.S. Labor Department has been released, providing insights into the state of the U.S. economy as the new year begins.
According to CBS News business analyst Jill Schlesinger, the economy added 143,000 jobs in January, slightly below the anticipated range of 150,000 to 200,000 jobs. However, revisions to the previous two months' data showed higher job growth than initially reported, contributing to a total of 1.9 million jobs created in 2024. This marks 49 consecutive months of job growth, reflecting a solid economic performance.
The unemployment rate saw a slight decrease, edging down to 4%. Schlesinger highlighted a positive trend for workers: average annual wages increased by 4.1%. This wage growth is significant as it surpasses the inflation rate by more than a full percentage point, indicating that workers are earning more than the cost of living is rising. This trend has persisted for the past six to eight months, which is encouraging for the workforce.
In addition to the January figures, there was a revision to the jobs data from the previous year. Schlesinger explained that the Bureau of Labor Statistics conducts an annual review of employment data, which involves collecting responses from companies about their hiring and layoffs. This process revealed that from April 2023 to March 2024, there were nearly 600,000 fewer jobs than initially reported. While this may sound concerning, it translates to about 49,000 fewer jobs per month. Despite this revision, the economy still experienced an average monthly job growth of 195,000 during that period, which is considered robust.
The Federal Reserve has taken note of the strong job market, which has allowed it to maintain its current stance on interest rates. Schlesinger noted that the Fed’s decision to hold rates steady reflects confidence in the job market’s resilience, even amid high interest rates.
One of the week’s major news stories involved proposed tariffs with Mexico and Canada, which are currently on hold. Schlesinger discussed the potential impact of these tariffs on the labor market. If implemented, tariffs could increase costs for U.S. importers, potentially leading to reduced hiring or layoffs. The duration of the tariffs will play a crucial role in determining their economic impact. A short-term imposition may have minimal effects, but prolonged tariffs could cause significant disruptions in the labor market.
Jill Schlesinger regularly provides her insights on CBS Mornings and the CBS Evening News, offering valuable analysis of economic trends and their implications for the workforce.