U.S. employers hired at a stellar pace last month, wages rose by the most in six years, and Americans responded by streaming into the job market to find work.
The U.S. Labor Department said Friday that the economy gained a seasonally adjusted 257,000 jobs in January, and added far more in previous months than originally estimated. Businesses added 414,000 jobs in November, the government now says, the most in 17 years. Total job gains in December were also revised higher, to 329,000, up from 252,000.
Average hourly wages, meanwhile, jumped 12 cents to $24.75 U.S., the biggest gain since September 2008. In the past year, hourly pay has increased 2.2%.
The unemployment rate rose to 5.7% from 5.6% But experts say that's not necessarily a bad thing. More Americans began looking for jobs, though not all found work. Their job hunting suggests they are more confident about their prospects.
Strong hiring pushes up wages as employers compete for fewer workers. Job gains have now averaged 336,000 a month for the past three months, the best three-month pace in 17 years. Just a year ago, the three-month average was only 197,000.
The Federal Reserve is closely monitoring wages and other job market data as it considers when to begin raising the short-term interest rate it controls from a record low near zero. The Fed has kept rates at record lows for more than six years to help stimulate growth. Most economists think the central bank will start boosting rates as early as June.
Related Stories
