London Daily

Focus on the big picture.
Wednesday, May 13, 2026

US economy defies fears of Omicron-driven slowdown to deliver nearly half a million new jobs

US economy defies fears of Omicron-driven slowdown to deliver nearly half a million new jobs

A better than expected January for American jobs could strengthen the hand of the US Federal Reserve as it prepares to deliver an expected series of interest rate hikes later this year.

The US employment market started the year in a much healthier state than expected, despite Omicron disruption hitting consumer-facing businesses.

America added 467,000 jobs in January - about three times the 150,000 level expected by economists - according to the US bureau of labour statistics.

The dollar rose and Wall Street stocks were subdued as the unexpectedly strong figures appeared likely to boost the pace and scale of expected interest rate hikes by the US Federal Reserve as it battles surging inflation.

Federal chair Jerome Powell has said there is quite a lot of room to raise rates without threatening jobs


The Fed's chairman, Jerome Powell, said last week that there was "quite a lot of room to raise interest rates without threatening the labour market".

Analysts said the year-on-year growth figure of 5.7% within the jobs report was stronger than expected, adding to the inflation pressure.

January's jobs increase was a bit lower than the average 500,000 rate of jobs being added every month over the course of 2021.

The report also showed the unemployment rate of 4% was slightly higher than December's 3.9% - and there was a surge in the number of workers unable to work due to illness.

It revised up the number of jobs added over the course of 2021 by more than 200,000.

The resilient picture could change expectations of a slowdown at the start of 2022 after a robust bounce-back at the end of last year.

The jobless rate remains above pre-pandemic levels


Figures last week showed the world's biggest economy rebounded in 2021 after its COVID-driven slump to deliver its strongest annual growth since 1984.

US GDP recovered all of its pandemic losses by the middle of last year, but the labour market has taken longer to recover - even though it added a record 6.4 million jobs last year.

The unemployment rate remains higher than its pre-pandemic level of 3.5% and the current jobless total of 6.5 million compares with 5.7 million in February 2020.

Newsletter

Related Articles

0:00
0:00
Close
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
×