January's Wage Growth Was Fastest in almost a Decade

Mario Tama  Getty

Mario Tama Getty

A worker assembles chainsaw components at the Stihl Inc. manufacturing facility in Virginia Beach, Va., on January 11.

Friday, the Bureau of Labor Statistics said 200,000 jobs were created in January.

Average hourly earnings for all private-sector workers last month were up 2.9 percent from January 2017, the largest year-over-year percentage gain since June 2009, when the economy emerged from the Great Recession.

"Today's jobs number is very positive".

What they are saying?: "The faster pace of wage gains indicates that the labor market is tightening, with employers having to pay higher wages to get the workers they want", said David Berson, chief economist at Nationwide.

The Fed has forecast 3 rate increases this year. Over the year, construction employment has increased by 226,000, the government said.

"US bond markets aren't going to like it though". Second, average weekly hours worked for all employees slumped, which could have artificially boosted the hourly earnings figure for that series.

The average wage grew by nine cents, reflecting a 2.9 percent increase over the past 12 months.

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What happened: Hiring bounced back in January after a milder gain in December.

Overall, this report is more encouraging than its job creation numbers alone would justify.

Wages were the real standout in this report, however, coming in much better than expected. Although healthcare leaders will be on the outlook for any new regulations made by the new HHS Secretary Alex Azar this year that might impact bottom lines, he added. Wall Street economists had expected an increase of about 180,000, according to Bloomberg.

"Could we see wage growth break through the 3 percent barrier?" It raised borrowing costs 3X in Y 2017.

Fed policymakers left interest rate unchanged this week and said that inflation would move up this year.

■ Revisions in the November and December figures produced a net loss of 24,000 jobs. Construction added 36,000 jobs, restaurants and bars added 31,000 jobs, manufacturing added 15,000, and other sectors remained flat. That's in line with the resurgence in factory activity and rebound in housing. Professional and business services added 23,000 jobs. Some are even willing to hire people with criminal records who would have been screened out in the past.

According to outplacement consultancy firm Challenger, Gray & Christmas, only seven companies, including Apple, had announced plans to add roughly a combined 37,000 new jobs in response to the tax cuts as of the end of January.

The central bank held its benchmark rate steady earlier this week, but Friday's report is likely to increase the odds of a rate hike in March. The company recently started a program to help franchisees expand their marketing efforts by hiring at-home parents and others who had not been in the labor force. A broader measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons edged higher to 8.2 percent, the highest level since September.

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