‘Biden economic plan is working,’ touts president amid blowout jobs number

A defiant President Biden crowed Friday over “strikingly good news” in a jobs report that showed U.S. employers added 517,000 jobs in January.

The report was far stronger than expected, given the Federal Reserve’s action to corral inflation through higher interest rates and forecasts the economy will dip into a recession in the coming year.

“Today I’m happy to report that the state of the union and the state of our economy is strong,” Mr. Biden said at the White House.

The unemployment rate is down to 3.4%, or the lowest rate since 1969.

“The lowest unemployment rate in 54 years. Manufacturing rebounding at a faster rate than in the last 40 years. Inflation coming down, real wages going up but moderately going up — not going through the roof. The economy growing at a solid clip,” Mr. Biden said. “Put simply, I would argue the Biden economic plan is working.”

Mr. Biden faced a number of economic headwinds upon taking office. Supply chains were trying to shake off the pandemic doldrums, and consumer prices continued to rise for months despite White House claims inflation was temporary.

Rising wage growth could accelerate inflation, though the Friday report showed hourly pay rose 4.4% in January compared with a year earlier — slower than the 4.8% year-over-year increase in December.

The president said Friday the pace of inflation is slowing and refused to take any blame for existing inflation, saying prices were rising “when I got here.”

The Republican National Committee said Mr. Biden needs to take responsibility for the sticker shock that marked the first half of his term.

“The Biden-Harris economic agenda has caused nothing but pain and misery for American families. Their failed policies have robbed workers of their hard-earned money and forced Americans to take a pay cut,” RNC Chairwoman Ronna McDaniel said. “Inflation has outpaced wages for 21 straight months, and Democrats only want to waste trillions more in taxpayer dollars.”

The Friday report said more Americans entered the labor force last month. The proportion of adults who had a job or were looking for one — the labor force participation rate — ticked up to 62.4%. That was the highest level since last March, though still well below pre-pandemic levels.

January’s job growth far exceeded December’s 260,000 total and extended a streak of powerful hiring gains that raised concerns at the Fed about inflation pressures. The Fed has raised its key rate eight times since March to try to contain inflation, which hit a four-decade high last year but has slowed since then.

Companies are still seeking more workers and are hanging tightly onto the ones they have. Putting aside some high-profile layoffs at big tech companies like Microsoft, Google and Amazon, most workers are enjoying an unusual level of job security even at a time when many economists see a recession approaching.

Mr. Biden took a swipe at naysayers who said he was steering the U.S. economy in the wrong direction.

“Today’s data makes crystal clear what I’ve always known in my gut. These critics and cynics are wrong,” Mr. Biden said. “Our plan is working because of the grit and resolve of the American worker.”

• This story is based in part on wire service reports.