Jolly January

January net payrolls rose by a staggering 517,000, and the unemployment rate fell to 3.4%, its lowest level since 5/69. Moreover, the average workweek, which had been steadily falling since peaking at 35 hours in 1/21, shot up from 34.4 hours to 34.7 hours suggesting there is real work to do. Additionally, benchmark revisions boosted total 2022 employment growth by 500,000. The labor market is hot. Rate hikes will continue.