US payroll growth in Jan beats expectations

Jobs Report for Jan 2024

Nonfarm payroll increased 353K (previous: 333K ; 3-month average:227K)
Unemployment rate was 3.7% (previous: 3.7%)
Labor force participation rate was 62.5% (previous 62.5%); prime-age participation rate was 83.3% (previous: 83.2%)
Average hourly wage growth was 4.48% YoY (previous 4.31%) ; MoM: 0.55% (previous: 0.4%)
Annualized three-month hourly wage growth: 5.38% (previous:4.18%)

Nonfarm payroll increased by 353,000 in January, up from 333,000 in December, which was revised upward from 216,000. The 3-month average growth now sits at 227,000.

Market expectation was an increase of “only” 180,000.

Unemployment rate remains at 3.7% in January

Meanwhile, labor participation rate held at 62.5% while the prime-age participation rate rose back to 83.3%, up 1 basis point from December.

Growth in hourly wage sped up again to 4.48% yearly, up from 4.31% previously. Monthly growth rate also accelerated to 0.55%, from 0.4%.

Annualized three-month hourly wage growth was 5.38%, rose from 4.14% at the end of last year.

During 2023, nonfarm payroll changes were usually revised upward later by the Bureau of Labor Statistics, by an average of 30,000.