January jobs reports showed nonfarm payroll employment / jobs increased by 517,000. With this increase, the unemployment rate goes down to 3.4%. It’s a stunning increase from the December number of 223k. The Federal Reserve has been trying to cool down the jobs market. Reason is a heated job market produces wage inflation as employers have to compete with higher salaries to attract workers. High wages lead to inflation in products and services which the Fed want to reduce. With the strong jobs report, the Federal Reserve will likely need to keep increasing the interest rate.
Source: U.S. Bureau of Labor Statistics