Beautiful Virgin Islands

Monday, Jul 14, 2025

US economy defies fears of Omicron-driven slowdown to deliver nearly half a million new jobs

US economy defies fears of Omicron-driven slowdown to deliver nearly half a million new jobs

A better than expected January for American jobs could strengthen the hand of the US Federal Reserve as it prepares to deliver an expected series of interest rate hikes later this year.

The US employment market started the year in a much healthier state than expected, despite Omicron disruption hitting consumer-facing businesses.

America added 467,000 jobs in January - about three times the 150,000 level expected by economists - according to the US bureau of labour statistics.

The dollar rose and Wall Street stocks were subdued as the unexpectedly strong figures appeared likely to boost the pace and scale of expected interest rate hikes by the US Federal Reserve as it battles surging inflation.

Federal chair Jerome Powell has said there is quite a lot of room to raise rates without threatening jobs


The Fed's chairman, Jerome Powell, said last week that there was "quite a lot of room to raise interest rates without threatening the labour market".

Analysts said the year-on-year growth figure of 5.7% within the jobs report was stronger than expected, adding to the inflation pressure.

January's jobs increase was a bit lower than the average 500,000 rate of jobs being added every month over the course of 2021.

The report also showed the unemployment rate of 4% was slightly higher than December's 3.9% - and there was a surge in the number of workers unable to work due to illness.

It revised up the number of jobs added over the course of 2021 by more than 200,000.

The resilient picture could change expectations of a slowdown at the start of 2022 after a robust bounce-back at the end of last year.

The jobless rate remains above pre-pandemic levels


Figures last week showed the world's biggest economy rebounded in 2021 after its COVID-driven slump to deliver its strongest annual growth since 1984.

US GDP recovered all of its pandemic losses by the middle of last year, but the labour market has taken longer to recover - even though it added a record 6.4 million jobs last year.

The unemployment rate remains higher than its pre-pandemic level of 3.5% and the current jobless total of 6.5 million compares with 5.7 million in February 2020.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
×