517,000 jobs were added in the U.S. in January and the unemployment rate fell slightly to 3.4 percent, according to the U.S. Bureau of Labor Statistics. It’s a surprisingly strong report despite widespread layoffs in the tech industry recently and estimates from economists for the start of 2023.
If you’re looking for more context on the matter, please consider Christopher Kayes, a professor of management and the chair of the management department at the George Washington University School of Business. He is an expert on leadership, resilience, teams, and workplace well-being.
Kayes says these strong numbers have many economists scratching their heads, after many had predicted a sinking economy to start the year. Overall, Kayes says the jobs report this month is good news for the economy but there is no clear signal that interest rates will be cut anytime soon.
“The over-the-top surprise in number of job gains points to an increasingly strong job market and more workers returning to work,” Kayes says. “Jobs creation hits a home run in the first inning of 2023, with 517,000 jobs created in January. Today’s report beat even the highest estimates for job creation suggesting a continued hot job market into 2023. Unexpected high number of jobs created means unemployment sinks to the lowest number in the last half of a century at 3.4%.
Kayes adds, “Broad-based increase in jobs across industries, including local government jobs, travel, leisure and hospitality, signals a hot economy. And, the important labor force participation rate increased, meaning more workers are hitting the pavement to find work.”
If you would like to speak with Professor Kayes, please contact GW Media Relations Specialist Cate Douglass at cdouglass@gwu.edu.
