Jobs Surprise

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What's Happening Today

Happy Friday! It's Kristin with your daily morning digest.

This morning, the Labor Department revealed U.S. employers added 467,000 jobs in January, despite concerns that the COVID-19 omicron variant would impact today's jobs report. The unemployment rate ticked up just slightly to 4% last month, from 3.9% in December.

The White House had tried to lower expectations for today's report—economists anticipated only 125,000 jobs to be added last month. Today's surprise jump speaks to the growing strength of the U.S. labor market, with unemployment dropping from over 6% in January of last year.

Markets are mixed following the release of the strong jobs numbers, after declines yesterday led by Facebook parent Meta and other tech stocks. Shares of Meta had plunged 26%, with over $200 billion in losses—the worst single-day decline for a U.S. stock in history. And in a case of "good news is bad news," the strength in jobs numbers supports the Fed's stance on raising interest rates soon.

Next week, The Balance will host its second conversation as part of its Instagram Live Black History Month series on home buying. We'll be chatting with Kara Stevens of Frugal Feminista about all the steps interested homebuyers should take to get financially ready to purchase a home. Mark your calendars! The conversation will be held Feb. 8, at 6 p.m. Eastern.

- Kristin

Editors' Picks

What Omicron? Economy Adds 467,000 Jobs in January (The Balance)

Buying a First Home Costs More Than You Think, Especially Now (The Wall Street Journal)

Staying Home Costs More, Too, As Natural Gas Prices Rise (The Balance)

Joe Manchin Gives Hint on Skinny Build Back Better: Fix Tax Code (Business Insider)

Off the Charts

The Bureau of Labor Statistics' monthly employment report included major upward revisions to data from previous months, and the gain—while much bigger than expected—was the smallest since September, using the new figures.

Number of the Day

50% - That's how many small business owners reported raising worker wages in January—a record high share for yet another month and the latest sign of the labor shortage.

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