WASHINGTON — Employers in the United States added more jobs than forecast in January, capping the biggest three-month gain in 17 years, and workers’ earnings jumped.
The advance of 257,000 in payrolls last month followed a gain of 329,000 in December that was bigger than previously reported, figures from the Labor Department showed on Friday.
The unemployment rate climbed to 5.7% as the improving job market lured more Americans into the labour force.
A stronger economy has encouraged companies to boost hiring, creating a virtuous cycle of growth as Americans spend newfound incomes on goods and services. Sustained job growth will probably help assure Federal Reserve policymakers that the expansion is well-rooted and can withstand an increase in interest rates later this year.
Average hourly earnings jumped 0.5%, the most since November 2008, from the previous month. They were up 2.2% over the past year, the biggest increase since August.
Payroll gains averaged 336,000 over the last three months, the strongest since a comparable period ended in November 1997.
Job gains in January were led by retailers, construction and health-care companies.
The survey used to derive the unemployment rate, meanwhile, showed that about 1.05 million people entered the labour force and 759,000 found work. These numbers also reflect new estimates on the size of the population.
The participation rate, which indicates the share of working-age people in the labour force, increased to 62.9% from 62.7% in December.