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• Share of adults working or looking for jobs jumped from 61.9% to 62.2%
• Rising Omicron cases added to labor shortage dissuading employers from layoffs
The surge in COVID-19 cases due to the Omicron variant of the coronavirus has not hindered job growth as employers are swiftly hiring workers.
The Labor Department reported that the U.S. economy added 467,000 jobs in January. In November and December combined, Job growth was about 700,000 higher than previously reported.
Leisure and hospitality, which includes restaurants and bars, led the job gains with 151,000, a sign of strength after the pandemic hit them hardest. Professional and business services added 86,000; retail, 61,000; transportation and warehousing, 54,000.
Unemployment rises
The unemployment rate rose from 3.9% in December to 4% in January. Consequently, wages rose 5.7% in January from a year earlier, nearly double the average of about 3% before the pandemic hit.
The Omicron variant surge in cases added to the labor shortage as more workers called in sick. About 3.6 million Americans were employed but absent from work due to illness in January, up from two million in January 2021 and 1.1 million in January 2020.
Many companies were hesitant to let workers go amid widespread labor shortages. Despite that, the labor-force participation rate, or the share of the population working or seeking a job, rose to 62.2% last month, the highest level since the pandemic hit in early 2020, but continued to be below pre-pandemic levels.
However, the new figures prompted the Fed to raise interest rates quicker and withdraw the stimulus it provided sooner. Business demand for workers has shown no sign of flagging. In December, employers posted 10.9 million job openings, and 4.3 million workers quit, typically to take higher-paying positions. Both are near all-time highs.
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