January 2024 unemployment rate has challenged all the economists’ forecasts!

January has always been a tricky month to forecast the labor market. Indeed, coming right after the end of year festivities, many have employed seasonal workers. Moreover, being the end of the year, companies were tightening their budget.
January marked the 24th consecutive month with an unemployment rate below 4%, standing at 3.7%. This extended period of low unemployment rates hasn’t been witnessed since 1967.

The jobs report detailed significant job growth in various sectors:

1. Education and Health services with 112k
2. Professional and Business services with 74k
3. Retail Trade with 45.2k
4. Coming at the lowest: Utilities, mining and logging.

The positive figures in the job market are indicative of growing consumer confidence and spending. The consistent low unemployment rates contribute to more robust economic growth.
These promising trends in the labor market reflect a resilient and thriving US economy, surpassing expectations and setting an optimistic tone for the future.

Source: Alicia Wallace, 2024 “The US economy added 353,000 jobs in January, starting off 2024 with a bang”, edition.cnn.com, February, 2nd 2024, https://edition.cnn.com/2024/02/02/economy/january-jobs-report-final/index.html