U.S. job growth exceeds expectation in January

U.S. job growth in January beats market expectation, while wage growth slows in the month.

The total nonfarm payroll employment increased by 227,000 in January, beyond the market expectation of 175,000, according to data released by the Labor Department on Friday.

The growth was higher than last December's 157,000 increase which was revised up from previously reported 156,000. The Labor Department revised down November's data from 204,000 to 164,000.

With the revisions, employment gains in November and December last year were 39,000 lower than previously reported. Over the past three months, job gains have averaged 183,000 per month.

The unemployment rate edged up to 4.8 percent in January from December's 4.7 percent, as more people joined the labor force.

The labor force participation rate, which shows the share of working-age people in the labor force, increased to a four-month high of 62.9 percent from 62.7 percent.

In January, the average hourly earnings rose 3 cents to 26 U.S. dollars, following a 6-cent increase in December. Over the year, average hourly earnings have risen by 2.5 percent, down from the 2.8 percent growth in December.

Analysts hold that the steady job growth, coupled with the modest wage growth, may suggest that job market still have room to improve, which could allow Federal Reserve to continue current interest rate hikes at a gradual pace.

U.S. Fed on Wednesday kept the benchmark interest rates unchanged, as many analysts noted that central bank officials still wait for more clarity on the possible fiscal policy changes.

Fed Chair Janet Yellen said recently that the central bank might continue to gradually raise interest rates as the economic growth was unlikely to pick up markedly in the near term.

However, she also emphasized the uncertainty of the interest rates path, in view of the possible fiscal stimulus proposed by the Donald Trump administration. Endi