Hiring Increases Due to Rise in Consumer Confidence and Spending

Kicking off 2024, the U.S. Labor Department’s Bureau of Labor Statistics reported last week that the U.S. economy added over 350,000 jobs in January – far exceeding expectations. The unemployment rate was 3.7 percent for the third month in a row coming in below 4% for two straight years – the longest such streak since the 1960s. In total, 14.8 million jobs have been created under President Biden, with 3.1 million created last year alone.

In addition to last week’s jobs numbers, the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) recently reported an increase of 3.3 percent in real gross domestic product (GDP) in the fourth quarter of 2023 .

“Last week’s jobs report made it explicitly clear that the United States has the strongest economy in the world,” said Commerce Secretary Gina Raimondo. “This significant increase in jobs is a direct reflection of President Biden’s ongoing commitment to build an economy from the middle out and bottom up.”

Wages rose faster than expected in January as well. Average hourly pay climbed a sharp 0.6% from December, the fastest monthly gain in nearly two years, and 4.5% from January 2023. Average hourly earnings increased 0.6%, double the monthly estimate. On a year-over-year basis, wages jumped 4.5%, well above the 4.1% forecast. In addition, consumer spending on both goods and services beat expectations in November and December.

America’s economy is the strongest in the world with 14.8 million jobs created under President Biden. As part of his economic agenda, President Biden is committed to creating more American jobs and making smart economic investments in our country to safeguard U.S. competitiveness. For more information, see last week’s statement by President Biden on the January Jobs Report.

By the numbers is a new series that showcases the Commerce Department’s economic indicators and how they impact the American economy.