US Economy Adds 517,000 New Jobs in January as Fed Tightening Fails to Cool Labor Market

A man walks out of a Marc’s Store in Mayfield Heights, Ohio, on Jan. 8, 2021. Tony Dejak/AP Photo

The U.S. economy created 517,000 new jobs in January, up from an upwardly revised 260,000 in December, according to the Bureau of Labor Statistics (BLS). This is also higher than economists’ expectations of 185,000.

The unemployment rate dipped to 3.4 percent, down from 3.5 percent and below the market estimate of 3.6 percent.