On Friday, the U.S. Department of Labor reported that the U.S. economy added 517,000 jobs in January – far exceeding expectations and indicating that a recession in the near term is increasingly unlikely. The unemployment rate is at its lowest rate since 1969.
The report showed that the economy added 401,000 jobs a month in 2022. The U.S. economy added nearly 5 million jobs in 2022 after adding 7 million jobs in 2021.
“Today, the Bureau of Labor Statistics reported that the American economy added 517,000 jobs in the month of January, and the unemployment rate ticked down to 3.4 percent, the lowest rate since May of 1969,” said Labor Secretary Marty Walsh. “With 12.1 million jobs added since President Biden took office and a monthly average of 356,000 jobs over the past three months, we began 2023 with more strong, steady job growth that benefits workers and their families.”
The news was welcomed by the White House.
“Americans have been through a tough few years, but I am optimistic about our country’s economic prospects,” President Joe Biden wrote. “Americans’ resilience has helped us recover from the economic crisis created by the COVID-19 pandemic, families are finally getting more breathing room, and my economic plan is making the United States a powerhouse for innovation and manufacturing once again.”
“The economy has created more than 10 million jobs since I took office, and the unemployment rate is near a 50-year low,” Biden continued. “The unemployment rate for Black Americans and Hispanic Americans is near historic lows. The number of Americans filing for bankruptcy is half its pre-pandemic rate. 2021 and 2022 are on track to be the best and second-best years for small business applications on record.”
President Biden admitted that despite the progress on jobs, inflation is still too high.
“It’s going to take time to get inflation back to normal levels, and we may see setbacks along the way,” Biden said. “The Federal Reserve has a primary responsibility to control inflation, and I have appointed highly qualified people to lead that institution, given the critical importance of its dual mandate of maximum employment and stable prices. But Americans should have confidence that my plan is working.”
Alabama’s preliminary, seasonally adjusted December unemployment rate was 2.8 percent. That was down from December 2021’s rate of 3.1%.
“As we close out our economic reporting for 2022, I’m pleased to say that Alabama has recovered well from the pandemic and has maintained positive momentum throughout the year,” said Governor Kay Ivey. “We broke records all year long, reminding everyone that Alabama is the best place to live, to work, and open a business. Our wages are up, jobs are plentiful and still growing, and we’re seeing some of our highest employment in major sectors in more than a decade. I couldn’t be more proud of the progress we’ve made.”
It will be at least another week for Alabama’s January unemployment to be announced.
With record job growth, inflation appearing to be slowing, and economic growth strong in the fourth quarter, there is growing optimism that the economy is not going into recession.
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