US employers added the most workers in four months in January while wage growth slowed more than projected, suggesting some slack remains in the labour market.
Last month’s 227,000 increase in payrolls followed a 157,000 rise in December, a US labour department report showed on Friday in Washington. The jobless rate rose to 4.8 per cent, and average hourly earnings grew 2.5 per cent from January 2016, the weakest since August.
The data, representing the final figures under president Barack Obama, indicate the job market is still enjoying steady growth though isn't tight enough yet to result in a bonanza for worker pay.
Tax cuts
While analysts expect hiring to cool as the economy nears full employment, President Donald Trump has pledged to bring people back into the workforce and boost wages further through tax cuts, infrastructure investment and looser regulation.
"There's more slack in the labour market than the unemployment rate implies, but we're continuing to make progress in absorbing that slack," said Russell Price, senior economist at Ameriprise Financial in Detroit, who had estimated a 220,000 job gain in January. "As that happens, wage and salary growth should gain additional traction." – (Bloomberg)
