US job growth soars past expectations with 467,000 added, shaking off omicron surge

U.S. job growth blew past expectations in January as the economy brushed off a record-breaking surge in COVID-19 cases nationwide that threatened to sideline millions of workers and kept many consumers at home. 

The Labor Department said in its monthly payroll report released Friday that payrolls in January rose by 467,000, easily topping the 150,000 jobs gained forecast by Refinitiv economists. The unemployment rate, which is calculated based on a separate survey, ticked up slightly to 4% (the increase is largely because the labor force participation rate climbed to 62.2%, the highest level since the pandemic began in February 2020).

The surprise gain comes after the Biden administration spent the week publicly bracing for an ugly report that officials warned could show the economy actually lost jobs last month. But COVID-19 cases have eased in recent weeks, with the seven-day moving average falling to 596,860, down 20% from the prior week, according to the Centers for Disease Control and Prevention.