U.S. payrolls grew sharply by 467,000 in January, and the jobless rate rose to 4%, the Labor Department said Friday, as the economy weathered the Omicron wave and staffing shortages.

The January jobs report reveals the impact of the Omicron variant of Covid-19 on U.S. employment last month.

Many economists are projecting the labor market will bounce back later this year, as the virus subsides. Workers who were sick will be able to return to their jobs, and employers eager to hire will have fewer disruptions to confront, they say. Plus, there are numerous signs the labor market remains tight, from elevated job openings and worker turnover to low numbers of unemployment claims.

Still, the pandemic has triggered higher inflation, challenging policy makers and their efforts to support growth. The Federal Reserve signaled it would begin steadily raising interest rates in mid-March to bring down inflation.... Read More: WSJ