U.S. records over 350,000 new jobs despite layoffs
WASHINGTON, D.C., UNITED STATES — Despite recent layoffs in various sectors, the latest United States jobs report shows impressive job growth in January, with 353,000 new jobs added across major industries.
The U.S. Bureau of Labor Statistics revealed that the labor market remains strong, with the unemployment rate holding at 3.7% and labor participation steady at 62.5% in January. Total nonfarm payroll employment rose by 353,000, comparable to the 333,000 gain in December.
Other sectors posting job gains include healthcare, which added 70,000 jobs, retail trade, up 45,000, and manufacturing, which saw a moderate increase of 23,000 jobs.
According to McKinsey Partner Neha Patel and Social, Healthcare, and Public Entities (SHaPE) Global Leader Shubham Singhal, a notable shift in the healthcare industry is the increasing reliance on outsourcing, especially in health systems.
🧵 The economy added 353,000 jobs in January, including gains in professional and business services, health care, retail trade and social assistance. The unemployment rate remained at 3.7%. https://t.co/YhLEuaacSN
More #JobsReport highlights ⤵️ pic.twitter.com/IQUSIgTydH
— U.S. Department of Labor (@USDOL) February 2, 2024
Moreover, professional and business services saw robust hiring of 74,000 additional jobs, well above the 2023 monthly average of 14,000. Major companies in this sector include PayPal and Salesforce, which both announced workforce reductions in January.
Companies like Wayfair and UPS also revealed plans to let go of workers.
The furniture retailer stated that remote employees would be more affected by layoffs as they believe staff should be in the office most days. Executives think the company’s “best work is done in person.”
The renowned global shipping company has declared that most of its non-operations workforce will be required to work from the office five days per week starting March 4.
A recent analysis of two million employees by Live Data Technologies found that 10% of fully remote workers were laid off in 2023, compared to just 7% of hybrid and in-office staff.
The tech sector, with its broader remote work adoption, is driving much of the data, with over 240,000 employees laid off globally, according to data aggregation website Layoffs.fyi.
