Although pay growth has continued to moderate, Fed should find some solace in its fight against inflation despite the dramatic acceleration in job growth in the United States in January amid a persistently healthy labour market.

According to a survey of businesses conducted by the Labor Department on Friday, nonfarm payrolls increased by 517,000 jobs in the previous month. Data for December was updated to reflect a larger number of jobs added (260,000 as opposed to the previously reported 223,000).

After increasing by 0.4% in December, the average hourly wage increased by 0.3%. As a result, the annual pay growth rate decreased from 4.8% in December to 4.4%. According Reuters polled economists, who projected 185,000 new jobs on payrolls and 4.3% annual salary growth. Forecasts for payroll growth varied from 125,000 to 305,000

As a result, the 3.4% unemployment rate for January differs significantly from the 3.5% rate for December.