U.S. employers added a robust 200,000 jobs in January, and wages rose at the fastest pace in more than eight years, evidence of a consistently healthy job market.
The unemployment rate remained 4.1%, the lowest level since 2000, the Labor Department says in its monthly jobs report today.
The pay gains suggest employers are increasingly competing for a limited pool of workers. Raises stemming from Republican tax cuts and minimum wage increases in 18 states also likely boosted pay last month. The figures point to an economy on strong footing even in its ninth year of expansion, fueled by consumer spending and global growth.
The pickup in wages could make it likelier that the Federal Reserve in coming months will raise short-term interest rates more quickly.
In January, average hourly pay rose 9 cents to $26.74 after an even bigger increase in December. Compared with 12 months earlier, wages are up 2.9%—the biggest gain since the recession ended eight years ago.
Weak wage growth has been one of the economy’s most persistent shortcomings for nearly a decade. But with fewer workers to hire, employers are being forced to raise pay.
